Increase in Inflation and Consumer Spending in the USA

• Inflation in the USA reached 2.6% in June 2025.
• Consumer spending increased by 0.3% in June compared to May.
• The Federal Reserve did not change the main interest rate, which remains at 4.3%.

In June 2025, inflation in the USA rose to 2.6% on a year-over-year basis, which was a result of increased prices due to tariffs imposed by the administration of President Donald Trump. According to the Department of Commerce, prices for goods increased by 2.6% compared to the same period last year, exceeding the target indicator of the Federal Reserve System.

Consumer spending also showed an increase of 0.3% in June compared to May, indicating a slight improvement in the economy. The personal consumption expenditure index, which is used by the Federal Reserve to monitor inflation, rose by 0.3% on a monthly basis. This pushed the annual rate up to 2.6%, the highest level since July.

The Federal Reserve kept the main interest rate at 4.3%, disregarding Trump's calls for a reduction. Fed Chair Jerome Powell noted that the impact of tariffs on prices could be both immediate and prolonged.

Although consumer spending has increased, it is worth noting that consumer demand remains at a low level, with the increase only being 1.4% compared to the first quarter of the year.

Tags: USA/Economy