US Inflation Trends: Consumer Prices Rise Amid Stable Wholesale Inflation
Despite a rise in consumer prices influenced by tariffs, US wholesale inflation remained stable in June, indicating mixed economic signals ahead.
U.S. inflation rises for second straight month
World News Group
Overview
- Economists projected a 0.3% rise in consumer prices from May to June, the largest increase since January, influenced by Trump's tariffs.
- Core inflation, excluding food and energy, rose to 2.9% in June, reflecting tariff impacts, while core producer prices remained unchanged.
- US producer prices remained unchanged in June, with wholesale inflation under control, indicating stability despite consumer price increases.
- June wholesale prices increased by 2.3% year-over-year, marking the smallest gain since September, suggesting a cooling trend in wholesale inflation.
- The Federal Reserve is expected to maintain interest rates amid these mixed signals, complicating Trump's calls for rate cuts ahead of midterm elections.
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Analysis
Center-leaning sources frame the June CPI increase as a direct consequence of President Trump's tariffs, using loaded language like "tariff shock" and "unwelcome rise." They emphasize economists' predictions that tariffs would "reignite inflation," presenting the data as a fulfillment of these concerns and prioritizing the narrative of tariffs driving consumer prices higher.
"U.S. wholesale inflation cooled last month, despite worries that President Donald Trump’s tariffs would push prices higher for goods before they reach consumers."
ABC News"Wholesale prices can offer an early look at where consumer inflation might be headed."
Associated Press"Despite a rise of inflation, Trump appeared to celebrate the data on Tuesday."
ABC News"The overall increase remained contained and came in largely within expectations, offset by declines in prices for new and used cars, airfare and hotel bookings."
BBC News"US inflation rose to its highest level in four months in June, suggesting that the effects of US President Donald Trump’s tariffs are starting to show up in prices."
Semafor"June's reading indicates that tariffs might gradually be starting to drive up prices in certain categories."
CBS News"Inflation picked up steam last month amid early signs that President Trump's tariffs are beginning to have an effect on the prices shoppers see in stores."
NPR"The consumer price index, a broad-based measure of goods and services costs, increased 0.3% on the month, putting the 12-month inflation rate at 2.7%, the Bureau of Labor Statistics reported Tuesday."
NBC News"The June inflation report may be an early sign of that effect."
USA TODAY"Worsening inflation could pose a political challenge for President Donald Trump, who promised during last year's presidential campaign to immediately lower costs."
ABC News"The uptick in inflation was driven by a range of higher prices."
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FAQ
President Trump's tariffs have increased costs on imports such as steel, aluminum, household goods, clothing, and electronics, which has driven up prices and contributed to the recent rise in U.S. inflation, including core inflation rising from 2.8% to 2.9% in June 2025.
The tariffs are projected to reduce long-run U.S. GDP by about 6% and wages by 5%, with middle-income households facing a lifetime loss of approximately $22,000. These negative effects are more than twice as harmful economically as a comparable corporate tax increase.
Trump's tariffs increased federal tax revenues by over $171 billion in 2025, constituting the largest tax hike since 1993, but also triggered retaliatory tariffs from countries such as China, Canada, and the EU, impacting $330 billion of U.S. exports and reducing GDP by an estimated 0.2%.
Amid rising inflation driven by tariffs, the Federal Reserve is expected to maintain interest rates rather than cut them, which complicates President Trump's calls for rate reductions to stimulate economic growth.
Rising inflation poses significant political challenges for President Trump and Republicans ahead of the midterm elections, as increasing consumer costs undermine economic promises made by the administration.
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