07/15/2025

U.S. Consumer Prices Pick up in June

June could mark the start of tariff-induced price rises

U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September.

Despite the pick-up in the Consumer Price Index (CPI) reported by the Department of Labor (DOL) on Tuesday, underlying inflation remained moderate last month, with prices for new and used motor vehicles lower relative to May.

Services like airline fares as well as hotel and motel rooms were also cheaper in June. Softening demand as consumers hunker down is limiting price increases for these services, a trend that, if sustained, could ease concerns of a broad-based rise in inflationary pressures.

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