The US Consumer Price Index (CPI) rose 0.3% in June, with core inflation up 0.2%, according to data released Tuesday. While overall inflation is moderate, the new numbers reveal a shift in where price pressures are coming from.
Housing costs have become less expensive, with shelter prices rising just 0.2% last month – a decrease from 3.8% in June 2021 and 4.2% in May. However, tariffs on imported goods, particularly furniture and apparel, are contributing to inflation.
According to economist Tani Fukui at MetLife Investment Management, core CPI has increased by 2.9% over the past year, driven largely by price increases in categories such as household furniture, cars, and apparel. These rises are partly due to tariffs imposed during the trade war.
Fukui notes that tariff effects on inflation are “like a broken bone,” which can take time to heal. The Federal Reserve has been monitoring shelter costs, which have been rising gradually but are now showing signs of moderating.
However, some experts warn that if shelter costs do not moderate further, it could lead to CPI drifting into the 3% range.
Source: https://www.axios.com/2025/07/15/inflation-report-cpi-june-trump-tariffs