Inflation in June 2025
The inflation rate in the United States rose significantly in June 2025. The annual inflation rate increased to 2.7%, up from 2.4% in May and the highest level since February 2025. The Consumer Price Index (CPI) rose by 0.3% in June compared to the previous month, marking the largest increase in five months.
Causes of the Inflation Increase
A primary reason for the increased inflation is the rise in import costs due to new tariffs. This particularly affects furniture, toys, recreational goods, and automobiles. Additionally, recovering gasoline prices contribute to inflation.
Core Inflation
The core inflation, which excludes volatile food and energy prices, increased to 3% in June after remaining at 2.8% for three months. The monthly core inflation also rose by 0.3%.
Impact on Interest Rates and Monetary Policy
The increased inflation could exert pressure on the U.S. Federal Reserve to adjust its monetary policy, although experts expect interest rates to remain unchanged for the rest of the year. Companies may pass on increased costs.
Significance for Investors and Savers
Inflation impacts investment decisions as it reduces purchasing power. Savers may prefer inflation-protected assets such as inflation-indexed bonds.
Overall, the inflation increase indicates that economic conditions remain dynamic and that both investors and savers need to respond.