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<\/iframe><\/div>\n<div id=\"article-body\">\n<p>US inflation climbed to 2.7 per cent in June, surpassing expectations and signalling that Donald Trump\u2019s tariffs are hitting prices.<\/p>\n<p>Tuesday\u2019s annual consumer price index figure was up from 2.4 per cent in May and above expectations of 2.6 per cent among analysts surveyed by Bloomberg.<\/p>\n<p>The data from the Bureau of Labor Statistics comes as the US president ratchets up his tariff war with Washington\u2019s trading partners, threatening to impose large levies on importers from next month if they do not reach trade deals. <\/p>\n<p>\u201cToday\u2019s report showed that tariffs are beginning to bite,\u201d said Omair Sharif at Inflation Insights.<\/p>\n<p>Trump has announced a host of tariffs since returning to office, setting a baseline rate of 10 per cent and introducing an array of sector-specific levies. He has delayed the introduction of steeper reciprocal duties, previously due to take effect last week, until August 1. <\/p>\n<p>\u201cThe effects of tariffs are finally showing through in inflation, although still in a modest way, suggesting that businesses have so far absorbed a significant share of the impact,\u201d said Eswar Prasad, economics professor at Cornell University.<\/p>\n<p>He added: \u201cThis is unlikely to be tenable, especially if Trump follows through with his recent tariff threats.\u201d<\/p>\n<p>June\u2019s inflation rise was fuelled in part by higher food prices, but offset by weaker commodity prices. Annual core inflation, which strips out more volatile food and energy prices, rose 2.9 per cent, in line with expectations.<\/p>\n<div class=\"n-content-layout\" data-component=\"flourish\" data-component-id=\"24246409\" data-component-type=\"flourish-in-article\">\n<figure class=\"n-content-picture n-content-layout__container\"><picture data-asset-type=\"flourish\" data-flourish-id=\"24246409\" data-flourish-type=\"visualisation\">\n<div id=\"24246409\" class=\"cp-message o-message o-message--inform o-message--notice\" data-o-component=\"o-message\">\n<div class=\"o-message__container\">\n<div class=\"o-message__content\">\n<p class=\"o-message__content-main\">Some content could not load. Check your internet connection or browser settings.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><img decoding=\"async\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fpublic.flourish.studio%2Fvisualisation%2F24246409%2Fthumbnail%3FcacheBuster%3D973658?source=cp-content-pipeline&fit=scale-down&quality=highest&width=1020&dpr=1\" alt=\"\"\/><\/picture><\/figure>\n<\/div>\n<p>Traders in the futures market modestly increased their bets on interest rate cuts after the data publication, but still expect two reductions by year-end.<\/p>\n<p>The dollar fell slightly against a basket of other currencies, while Treasury yields and stock futures were largely unmoved.<\/p>\n<p>\u201cThe market is relieved that the number wasn\u2019t worse,\u201d said Andy Brenner, head of international fixed income, NatAlliance Securities. <\/p>\n<p>He added that there had been \u201ca fear\u2009.\u2009.\u2009.\u2009of a worse number\u201d after US Treasury secretary Scott Bessent argued in a Bloomberg interview on Tuesday against giving too much weight to one month\u2019s figure.<\/p>\n<p>Lou Brien, market strategist at DRW Trading, noted the \u201cmuted\u201d market reaction to Tuesday\u2019s figures but added: \u201cWe still have the possibility that inflation is lurking around the corner.\u201d<\/p>\n<p>Trump has piled pressure on US Federal Reserve chair Jay Powell to reduce interest rates by as much as 3 points to lower the country\u2019s debt payments. <\/p>\n<p>But most members of the Fed\u2019s rate-setting committee have indicated they want to hold off on any reduction until the inflationary impact of tariffs becomes clear. <\/p>\n<p>Two members had indicated they would be open to a cut as soon as this month.<\/p>\n<\/div>\n<p>#inflation #reaches #Trump #tariffs #hit<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the White House Watch newsletter for free Your guide to what Trump\u2019s second term means for Washington, business and the world US inflation climbed to 2.7 per cent in June, surpassing expectations and signalling that Donald Trump\u2019s tariffs are hitting prices. Tuesday\u2019s annual consumer price index figure was up from 2.4 per cent in […]<\/p>\n","protected":false},"author":1,"featured_media":250,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[164,397,373,56,82],"class_list":{"0":"post-249","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-hit","9":"tag-inflation","10":"tag-reaches","11":"tag-tariffs","12":"tag-trump"},"_links":{"self":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=249"}],"version-history":[{"count":0,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/249\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/media\/250"}],"wp:attachment":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}