Inflation in the USA according to the measure CPI – that is, the increase in consumer prices in annual terms – rose to 2.7 percent in June. This can be compared with 2.4 in May.
The so-called core inflation, where food and energy prices have been cleaned away, was 2.9 in June compared with 2.8 in May.
Analysts had on average counted on the CPI inflation to rise to 2.6 percent in June, while the core inflation would rise to 2.9 percent, according to a compilation of forecasts made by Bloomberg.
Consumer prices compared with the previous month rose by 0.3 percent, which was as expected. But if you clean away food and energy prices, the price increases compared with May were only 0.2 percent, which can be compared with an average forecast of 0.3 percent.
Prices for goods that are exposed to the Trump administration's tariffs – such as toys, furniture, appliances and clothing – generally rose. This suggests that companies have begun to pass on higher import costs to prices on American store shelves.
However, prices for new and used cars are falling, which slows down the development.
The unexpectedly weak price development compared with the previous month – for the fifth month in a row – strengthens the prospects for the US central bank to lower the interest rate in September.
