American inflation is one of the definitions that economists are afraid to appear Inflation news star-news.press/wp

Inflation in the United States last month increased to its highest level since February, as the overwhelming tariff for President Donald Trump raised the cost of a group of goods, including furniture, clothes and large devices.

The Ministry of Labor said on Tuesday, consumer prices increased by 2.7 percent in June of the previous year. On a monthly basis, prices increased by 0.3 percent from May to June, after only 0.1 percent in the previous month.

The exacerbation of inflation is a political challenge for Trump, who promised during the presidential campaign for the past year to immediately reduce costs. The height of acute inflation after the epidemic was the worst in four decades, and most Americans were tense of former President Joe Biden’s dealings with the economy. It is also possible that the high inflation will increase the US Federal Reserve’s frequency from reducing the short -term interest rate, as Trump requires loudly.

The central bank is expected to leave the interest rate to measure it in the range of 4.25 percent to 4.5 percent in a political meeting later this month.

Trump has repeatedly insisted that there is no “inflation”, and because of this, the Central Bank should quickly reduce the main interest rate from its current level. However, Federal Reserve Chairman Jerome Powell said he wanted to see how the economy interacts with Trump’s duties before reducing borrowing costs. The report of the Central Bank meeting did not appear from June 17 to 18, which was published last week, only a “couple” of officials who said they felt that prices may decrease as soon as the meeting of July 29-30.

With the exception of flying food and energy, basic inflation increased by 2.9 percent in June of the previous year, up from 2.8 percent in May. On a monthly basis, it rose 0.2 percent from May to June. Economists closely see the basic prices because they usually provide a better feeling of the place where inflation is heading.

The motivation behind inflation was driven by a range of high prices. The cost of gasoline increased by only 1 percent from May to June, while grocery prices increased by 0.3 percent. Device prices jumped for the third month in a row. Games, clothes, sound equipment, shoes and sports goods have become more expensive, all of which are heavily imported.

“I have started seeing scattered parts of the inflation system candidate in the tariff.”

Winograd also pointed out that housing costs, one of the largest inflation engines since the epidemic, continued to calm, proving wider inflation. The cost of rent increased by 3.8 percent in June compared to last year, the smallest annual increase since late 2021.

“Without the uncertainty in the customs tariff, the Federal Reserve would actually reduce interest rates,” said Winogerad. “The question is whether there is more in the future, and the Federal Reserve clearly believes its existence,” along with most economists.

Trump imposed 10 percent comprehensive duties on all imports, as well as 50 percent of steel and aluminum, 30 percent on goods from China, and 25 percent on imported cars. Only last week, the President of the European Union threatened with a new tariff of 30 percent starting from August 1.

It also threatened the duties of 50 percent on Brazil, which would raise the cost of orange and coffee juice. Orange prices jumped by only 3.5 percent from May to June, which is 3.4 percent higher than last year.

In general, grocery prices increased by 0.3 percent last month and increased by 2.4 percent from the previous year. While this is a much smaller annual increase by the epidemic, it is slightly larger than increasing the frequency of prenatal food. The Trump administration also put a 17 percent duty on Mexican tomatoes.

Powell under the fire

The acceleration in inflation can provide a kind of a kind of beans, which is increasingly heavy fire from the White House for not cutting the standard interest rate.

The Federal Reserve Chairman said that duties can pay prices and slow the economy, which is a difficult mix of the central bank because the highest costs usually lead to the leadership of the Federal Reserve while the weakest economy often causes it to limit it.

Trump said on Monday that Powell was “terrible” and “he does not know what hell’s right.” The president added that the economy was good despite Powell’s refusal to reduce prices, but it would be “nice” if there are price cuts, because people will be able to buy housing much easier. “

Last week, White House officials also attacked Powell due to the costs of a year’s renewal for the Federal Reserve Buildings, which are now scheduled to cost $ 2.5 billion, or nearly a third of the budget in the first place. While Trump cannot legally shoot on Powell just because he does not agree to interest rate decisions, the Supreme Court has indicated, he may be able to do this “for the reason”, such as misconduct or poor management.

Some companies have said that they have or plan to raise prices as a result of tariffs, including Walmart, the world’s largest retail store. Mitsubishi car maker said last month that he raised prices by 2.1 percent on average in response to the duties, and Nike said it would implement “surgical” prices to compensate for the costs of customs tariffs.

But many companies managed to postpone or avoid increasing prices, after building goods stocks this spring this spring to advance duties. Other companies may have declined to raise prices while waiting to see if the United States is able to reach commercial deals with other countries that reduce duties.