US Inflation Rises as Expected in June, Prompting the Fed to Remain Cautious on Rate Cuts

Odaily Planet Daily News: The U.S. CPI rose in June, which may signal the beginning of the long-anticipated inflation increase triggered by tariffs, prompting the Federal Reserve to remain cautious about resuming interest rate cuts. According to data from the U.S. Bureau of Labor Statistics, after a modest 0.1% increase in May, the CPI rose 0.3% month-on-month in June, marking the largest increase since January. Year-on-year, it rose 2.7% following a 2.4% increase in May. The core CPI rose 0.2% month-on-month and 2.9% year-on-year, after three consecutive months of 2.8% increases. The sharp rise in goods prices may be partially offset by a moderate increase in service costs, alleviating concerns about widespread inflationary pressures. Weak demand has limited price increases in service-related categories such as airfares, hotel, and motel room rates. (Jin10)