Washington, Jul 15 (AP) Inflation rose last month to its highest level in four months as the cost of gas, food, and groceries rose, reversing several months of cooling price pressures.
Consumer prices rose 2.7 per cent in June from a year earlier, the Labour Department said on Tuesday, up from an annual increase of 2.4 per cent in May. On a monthly basis, prices climbed 0.3 per cent from May to June, after rising just 0.1 per cent the previous month.
Worsening inflation poses a political challenge for President Donald Trump, who promised during last year's presidential campaign to immediately lower costs. The sharp inflation spike of 2022-2023 was the worst in four decades and soured most Americans on former president Joe Biden's handling of the economy.
Higher inflation will also likely heighten the Federal Reserve's reluctance to cut its short-term interest rate, as Trump is loudly demanding.
Excluding the volatile food and energy categories, core inflation increased 2.9 per cent in June from a year earlier, up from 2.8 per cent in May. On a monthly basis, it picked up 0.2 per cent from May to June. Economists closely watch core prices because they typically provide a better sense of where inflation is headed. (AP) PY