Inflation ticked up to its highest level in months in June amid concerns about President Donald Trump’s threats surrounding tariffs and his larger global trade war.
The Bureau of Labor Statistics released its Consumer Price Index summary Tuesday, which tracks how much inflation increased in the past month. The survey showed that the CPI increased 0.3 percent in June after it went up by only 0.1 percent in May. In the past 12 months, the index for all items jumped by 2.7 percent.
The Trump administration hailed the numbers in a statement, using the term “Panicans,” the president’s preferred term for people who worry about the market.
“Every month since President Trump took office, core inflation — the best measure of inflation — has beat or matched expectations,” the White House Press Secretary said. “The data proves that President Trump is stabilizing inflation and the Panicans continue to be wrong about tariffs raising prices.”
The move comes as Trump continues to ramp up his tariff threats. Last week, he fired off a series of letters to 26 countries announcing tariffs including a 30 percent tariff on Mexico and the European Union, and an aggressive 50 percent against Brazil.
The latter is despite the fact that the U.S. has a trade surplus with Brazil, though the president said he levied them because of the trial against former president Jair Bolsonaro, who faces charges related to an attempted coup in 2022.
Trump resumed his tariff plan last week that he had paused in April after he rocked global markets on “Liberation Day”. The president failed to reach the “90 deals in 90 days” that his trade adviser Peter Navarro had pledged he would achieve during the pause.
The index for shelter drove most of the price increase in June, jumping 0.2 percent after it increased 0.1 percent in May. The index for rent increased 0.2 percent in June and the index for homeowners’ equivalent of rent rose by 0.3 percent.
The index for household furnishings and operations also jumped last month. Trump has promised a return to furniture manufacturing in states like North Carolina.
But the index for household furnishings and supplies jumped by 1 percent as Trump plans to resume many of his tariffs on August 1. The index for window coverings and floor coverings rose 2.2 percent each in June and the index for other linens rose 5.5 percent.
The cost of food increased by 0.3 percent in June, and by 3 points in the past 12 months. Fruits saw some of the biggest spikes, with fresh fruits jumping by 1.3 percent overall, while the index for oranges and tangerines rose by 3.5 percent in the past month.
Americans remain highly unsatisfied with Trump’s performance on the economy. A YouGov poll released this week showed that 53 percent of Americans disapprove of Trump’s handling of jobs and the economy, up 16 points since he took office in January.
In addition, 60 percent of Americans disapprove of the way Trump is handling inflation and the cost of living, up 21 points since January.
The latest inflation numbers will also likely cause the Federal Reserve to pause before making a decision to cut interest rates, given Chairman Jerome Powell has said he wants to see tariffs’ effect on inflation and unemployment.
Trump has ramped up his war of words on Powell in recent weeks. While the president has said he would not fire him, administration officials are exploring options to remove the Fed Chair. On Tuesday, Treasury Secretary Scott Bessent told Bloomberg that Powell should step aside when his term expires next year and said the formal process to find a new chairman has already begun.
