July 16 (BBC/GNA) – US inflation jumped last month as President Donald Trump’s tariffs took hold, pushing up prices for items from clothing to coffee.
Consumer prices rose 2.7% in the year to June, up from 2.4% the previous month, with prices rising at the fastest pace since February, the Labor Department said.
Higher energy and housing costs, such as rents, were the major drivers of the increase.
But the data also suggested that consumers are starting to feel the impact of tariffs, as some firms begin to pass along the costs of Trump’s new taxes on imports.
Coffee prices jumped 2.2% from May to June, while prices for citrus fruits climbed 2.3%. Toy prices rose 1.8%, appliance prices increased 1.9%, while clothing prices gained 0.4% – the first increase to hit the sector in months.
But 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.
“There is a trickle of what is likely tariff-induced inflation in some categories, particularly household appliances and furnishings,” said Olu Sonola, head of US economic research at Fitch Ratings.
“This trickle is likely to gain momentum in the coming months.”
GNA/Credit: BBC