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U.S. inflation rose as expected in June, making the Fed continue to be cautious about cutting interest rates
Odaily News The rise in the U.S. consumer price index in June may mark the beginning of the long-expected tariff-induced inflation increase, which makes the Federal Reserve cautious about resuming interest rate cuts. According to the U.S. Bureau of Labor Statistics, the CPI rose 0.3% month-on-month in June after a small increase of 0.1% in May. This is the largest increase since January. Year-on-year, it rose 2.7% after a 2.4% increase in May. The core CPI rose 0.2%, up 2.9% year-on-year, after rising 2.8% for three consecutive months. The sharp rise in commodity prices may be partially offset by a modest increase in service costs, easing concerns about rising general inflationary pressures. Weak demand has limited price increases in service-related categories such as airfares and hotel and motel room prices. (Jinshi)
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