US inflation expected to rise in June with tariff-driven price hikes

By Lucia Mutikani

WASHINGTON (Reuters) -U.S. consumer prices likely picked up in June, potentially marking the start of a long-anticipated, tariff-induced increase in inflation that has left the Federal Reserve cautious about resuming its interest rate cuts.

The Consumer Price Index report from the Labor Department on Tuesday is expected to show a rebound in gasoline prices and higher costs for some tariff-sensitive goods last month. Inflation readings from February through May were on the soft side, leading to demands by President Donald Trump for the U.S. central bank to lower borrowing costs.

But with retailers like Walmart warning of price increases, most economists expect price pressures to begin building up beginning this summer and stretching through the end of the year. They said inflation has been slow to respond to Trump's sweeping import duties because businesses were still selling stock accumulated before the tariffs came into effect.

Business surveys have pointed to inflation rising this summer. Trump last week announced higher tariffs would come into effect on August 1 on imports from a range of countries, including Mexico, Japan, Canada and Brazil, as well as the European Union.

https://www.msn.com/en-us/money/markets/us-inflation-expected-to-rise-in-june-with-tariff-driven-price-hikes/ar-AA1ICbd1

Heckuva job Trumpy