Inflation Expected to Rise Due to Tariffs on Imports

• Inflation in June, according to forecasts, increased by 2.8%
• Tariffs on imports are pushing prices up for many goods
• Changes in BLS could impact the accuracy of statistics

It is projected that inflation in the USA rose in June, marking the third consecutive month of increase. The main reason for this is the tariffs on imports, which raise prices on goods such as furniture, household appliances, and toys. Along with the survey by economists, consumer prices increased by 2.8% in June compared to the previous year, exceeding the target indicator of the Federal Reserve at 2%. This increase complicates the possibility of lowering short-term interest rates, which President Donald Trump has been advocating for.

The head of the Federal Reserve, Jerome Powell, warned that rising inflation could lead to the Fed staying put, which would provoke Trump's dissatisfaction. It was noted that after Trump's announcement about tariffs in April, the increase in job openings significantly slowed down.

In addition, the Federal Statistical Service reported changes, as Trump dismissed the head of BLS, which could affect the accuracy of the data. In June, a moderate price increase of 0.2% is expected compared to May, although the decrease in gas prices and the shrinking demand for groceries reduce the overall pressure on inflation.

According to the data, tariffs on imports have risen to 18%, which is the highest rate since the early 1930s. Many companies have already raised prices to offset costs from tariffs. For example, companies like Procter & Gamble have announced price increases on certain products.

Tags: USA/Economy