Inflation heats up in June as President Trump’s tariffs start to bite

Prices are rising again, and it’s looking increasingly like tariffs are the culprit. The latest numbers show a 2.7% jump in consumer prices over the past year, with noticeable increases in rents, clothing, and household goods. With the impacts of the trade war lagging, it’s suspected they could be playing a role, as the costs of imported goods face new pressures. Previously, falling energy prices had offered some relief, but that trend reversed in June. With all this in motion, the Federal Reserve faces a tricky moment figuring which monetary policy to advance. Economic signals suggest caution; political signals suggest that caution will be met with retribution. Scott Horsley with NPR has the full story.

Scott Horsley

NPR

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