Inflation rose 2.7% in June, driven by higher gas prices, exceeding economists’ expectations of 2.6%. On a core basis, CPI increased 2.9% over the past year and 0.2% monthly. Trade tensions have escalated, with Trump imposing tariffs up to 50%. Markets expect the Fed to hold rates steady amid uncertainty.

Apparel, footwear, and furniture prices increased in June, indicating tariff impacts on consumers. Inflation remains subdued, but some goods are seeing higher prices. Experts suggest tariffs may cause temporary inflation spikes. Shelter costs and services contribute to core inflation. Food prices remain stable, except for a drop in egg prices.

Core inflation has remained high due to shelter and service costs. Monthly core inflation was aided by drops in airline fares, used cars, and new vehicles. Food prices stayed stable except for eggs. Trade tensions have led to uncertainty about Fed rate cuts. Markets expect rates to remain steady.

Read more at Yahoo Finance: Inflation accelerates in June as investors eye tariff-related price increases