The tsarif -driven inflation feared by the economists begins to dive

Washington (AP) – Inflation has increased at the highest level last month since February as President Donald Trumps Tariffs Push the costs for a number of goods, including furniture, clothing and large devices.

Consumer prices rose by 2.7% compared to the previous year, the Ministry of Labor told 2.4% in May on Tuesday. Every month, prices rose by 0.3% from May to June after only 0.1% rose in the previous month.

The deterioration in inflation is Trump a political challenge that promised to reduce the costs immediately over the past year, just to do a intoxication of tariffs that companies and consumers have obtained. Trump has already explained that the USA effectively no longer has inflation like him Try to print Chair of the Federal Reserve Jerome Powell in short -term interest rates.

Nevertheless, it makes the likelihood that the central bank will increase in inflation last month, more likely will keep the interest rates unchanged at the next meeting of the central bank in two weeks. Powell said he wanted to see how the economy reacts to Trump's tasks before reducing the loan costs.

Without the volatile categories for food and energy, core inflation rose by 2.9% compared to 2.8% in May in June. Every month, 0.2% were collected from May to June. Economists look closely at the core prices because they usually convey a better feeling for where inflation leads.

The increase in inflation was powered by a number of higher prices. Benzincosts rose by 1% from May to June, while food prices rose by 0.3%. The device prices rose for the third month in a row. Toys, clothing, audio equipment, shoes and sporting goods were all more expensive and are all significantly imported.

“They begin to see scattered pieces of the tariff inflation regime,” said Eric Winograd, chief economist at the Alliancebernstein asset management company, which has been added that the costs for long-lasting goods rose for the first time in the past month compared to one year in about three years.

Winograd also found that housing costs, one of the largest inflation drivers since the pandemic, has cooled further, which holds a broader inflation. In June in June, rental costs rose by 3.8% compared to a year ago, the smallest annual increase since the end of 2021.

“If it were not about tariff uncertainty, the Fed would already lower the tariffs,” said Winograd. “The question is whether more will come, and the Fed clearly believes that there are” together with most economists.

The share prices were mixed early, with the S&P 500 and the Nasdaq indices rose and the Dow Jones fell by 154 points. Some investors were cheered on by the fact that core prices were less than forecast.

Some items became cheaper last month, including new and used cars, hotel rooms and air prices. Travel prices have generally decreased in the past few months because fewer international tourists visit the United States

The report set up a broader political struggle for Trump's tariffs, a struggle that ultimately depends on how the US public feels about her living costs and whether the President makes his promise of 2024 good that his agenda would help the middle class.

The White House pushed back the claim that the report showed a negative influence of tariffs, since despite the 25% tariffs on cars and 50% tariffs for steel and aluminum, the costs for new cars had dropped. The administration also found that the clothing prices are still cheaper despite the clothing prices in June than three months ago.

“Consumer prices are low,” Trump wrote about the social truth. “Now put the Fed rate off !!!”

For democratic legislators, the inflation report has confirmed its warnings in the past few months that Trump's tariffs would increase inflation. Their argument on Tuesday was that the situation will probably become even more painful in view of the size of the tariff rates In the letters This Trump posted last week.

“For those who said that we had not seen the effects of Trump's wage wars, they look at today's data. The Americans continue to fight with the costs of food and rent-and now the prices for food and devices are increasing,” said Senator Elizabeth Warren, D mass.

Trump has imposed Cone tasks Of 10% for all imports plus 30% for goods from China. Just last week, the President threatened to meet the European Union with one New 30% tariff from August 1st.

He also threatened to beat 50% tasks in Brazilwhat would increase the costs for orange juice and coffee. The orange prizes rose by 3.5% from May to June and are 3.4% higher than a year ago, the government said on Tuesday.

Overall, food prices rose by 0.3% last month and increased by 2.4% compared to the previous year. Although this is a much lower annual increase than before pandemic, this is slightly larger than the pre-pandemic pace of the food price. The Trump government has Mexican tomatoes also made a duty of 17%.

The acceleration of inflation could have a kind of break for the Fed chair Powell, which is accommodated increasingly heavy fire From the White House so as not to lower the benchmark interest rate.

The Fed chair said that The tasks could increase the prices and slow the economyA difficult combination for the central bank, since higher costs usually make the Fed increase interest rates, while a weaker economy often causes it to reduce it.

Trump said on Monday that Powell was “terrible” and “doesn't know what the hell he does.” The president added that despite Powell's refusal to reduce interest rates, it was easy to pay, but it would be “nice” if it would be shortened of tariffs “because people were able to buy living space much easier”.

Last week officials of the White House Powell also attacked Around a third more than originally budgeted for cost overruns in the years of renovation of two FED buildings that now cost $ 2.5 billion. While Trump Legal cannot fire Powell just because he does not agree with his interest decisions, the Supreme Court has signaled that he may be able to do so “from the matter”, such as misconduct or mismanagement.

Some companies have announced or plan to increase prices due to tariffs, including Walmart, the world's largest retailer. Car manufacturer Mitsubishi said last month that it has raised the prices by an average of 2.1% in response to the tasks and Nike, and Nike has said It would implement “surgical” price increases to compensate for the tariff costs.

However, many companies were able to move or avoid price increases after setting up their inventory this spring to achieve the tasks. Other companies may no longer have to raise prices while waiting to determine whether the United States is able to achieve trade agreements with other countries that reduce the duties.