The inflation rate in the USA rose to 2.7 percent in June 2025, marking the highest value since February and an acceleration from 2.4 percent in May. Experts attribute this increase primarily to the tariff hikes under President Donald Trump, which have led to higher import costs. Affected product categories include furniture, toys, leisure items, and automobiles. Rising energy prices also contribute to inflationary pressure.
Changes and Effects
Monthly, the Consumer Price Index (CPI) increased by 0.3 percent in June – the strongest rise in five months – after it had only increased by 0.1 percent in May. Core inflation, which excludes food and energy, also slightly increased to about 3 percent annually and rose monthly by around 0.3 percent.
Market Reactions and Monetary Policy
Inflation expectations can trigger volatility in financial markets. Given the rising inflationary pressure, the US Federal Reserve may adjust its interest rate policy or make it more restrictive, which in turn could affect different asset classes such as stocks, bonds, or real estate.
Overall, there is a clear connection between Trump’s tariff policy and the recent rise in inflation in the USA, which could have potential implications for the economy and capital markets.