Consumer prices increased by 0.3% last month, driving the annual inflation rate up to 2.7%, the highest level since February, as per the Consumer Price Index data released by the Bureau of Labor Statistics on Tuesday.
This result aligns precisely with economists’ predictions for the headline CPI. This new data revealed a rise from the 2.4% annual inflation reported in May, although still trailing the 3% recorded in January when Trump began his term.
Notably, egg prices saw a significant cooling off in June, despite overall price increases. Egg prices saw a 27% increase over the year ending in June, reflecting a moderation from a 41% climb recorded the previous month.
When excluding the more volatile gas and food prices, the core CPI saw a lower-than-expected increase of 0.2% from May and 2.9% over the 12-month period ending in June, though these figures represented an upswing from the previous month’s 0.1% and 2.8% numbers, respectively.
President Trump, addressing the media at the White House on Monday before the inflation report’s release, highlighted the year’s inflation reduction. He proudly stated, “The economy is roaring, business confidence is soaring, incomes are up, prices are down and inflation is dead.”
Despite some relief in inflation, price hikes persistently remain above the Federal Reserve’s 2% target. Analysts warn that inflation could intensify in the coming months as tariffs begin to exert their influence, although the future remains uncertain given Trump’s ever-changing policy directions.
The Federal Reserve, in its recent forecast, projected a resurgence of inflation, with expectations that the personal consumption expenditures (PCE) index—a preferred measure of inflation by the Fed—will climb from 2.1% to 3% throughout the rest of 2025, marking a revision upward from the central bank’s March forecast.
