US Inflation Rises to 2.7% in June 2025 as Tariffs and Gas Prices Drive CPI Higher

US consumer prices climbed 0.3% in June 2025, pushing the annual inflation rate to 2.7%—the highest level since February, according to the latest Consumer Price Index (CPI) data from the Bureau of Labor Statistics. Core inflation, which excludes volatile food and energy costs, also accelerated, rising 0.2% from May and 2.9% year-over-year.

A key driver behind the uptick was the first increase in gas prices in five months. Additionally, the effects of sweeping tariffs imposed by President Donald Trump’s administration are becoming more visible, with categories such as home furnishings and toys experiencing notable price hikes. Economists had anticipated that tariff-related price increases would take time to materialize, and the June data confirms these expectations.

Despite the inflation rebound, the stock market reacted positively, with the S&P 500 and Nasdaq both posting gains after the report’s release. However, the rising cost of living could pressure household budgets and influence Federal Reserve policy if wage growth fails to keep pace.

Looking ahead, consumers should expect further price increases in tariff-exposed goods as the year progresses, making inflation a key issue for both businesses and households.

Source:CNN