The latest report from the Commerce Department shows the Federal Reserve’s preferred inflation measure increased last month, suggesting that President Donald Trump’s widespread tariffs are beginning to raise prices for numerous goods.
The report stated that prices increased 2.6% in June compared to a year earlier, up from an annual rate of 2.4% in May.
Excluding food and energy, prices rose 2.8% over the past year, the same as the previous month.
The inflation figures from the Commerce Department report show numbers exceeding the Fed’s 2% target for 2025.
On Wednesday, Federal Reserve Chair Jerome Powell decided to hold the central bank’s main rate at 4.3%, suggesting it could take months for the Fed to determine whether the import duties will cause a temporary price spike or a sustained rise in inflation.
Fed governor, Christopher Waller stated: “With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate.”
Also on Wednesday, the government released a report stating that the economy expanded at a 3% annual rate in the second quarter, while consumer spending rose by 1.4%.
By CEO NA Editorial Staff
