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.
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.
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.
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