Inflation in the United States rose to 2.7% in June from a year earlier, the highest level since February, as prices for gas, food and groceries climbed, the Labour Department said on Tuesday. The increase reversed several months of cooling inflation and came in higher than the 2.4% rise recorded in May.
On a monthly basis, consumer prices increased by 0.3% from May to June, after a 0.1% rise the previous month, AP reported.
The spike in inflation poses a political challenge for President Donald Trump, who had promised during last year’s campaign to bring down costs immediately. The sharp price surge in 2022–2023 was the worst in four decades and had undermined former president Joe Biden’s economic credibility.
The rise in prices is also likely to make the Federal Reserve more reluctant to cut its short-term interest rate, despite Trump’s repeated demands for a rate cut.
Excluding food and energy, core inflation rose 2.9% in June from a year earlier, compared to 2.8% in May. On a monthly basis, core prices increased by 0.2%.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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