Inflation Rises in June 2025
The latest consumer price index (CPI) data from the USA shows that inflation rose to 2.7% in June 2025 compared to the previous year. This marks an increase from the 2.4% rise in May. Core inflation, which excludes food and energy, also saw an increase to 3% from 2.8% in the previous month.
Monthly Change and Driving Factors
On a monthly basis, both the overall and core CPI are expected to rise by 0.3%. Rising prices for goods, partly due to tariffs and higher energy costs, contribute to this trend. The services sector cannot fully offset this price pressure.
Impacts on Investors
This development is particularly significant for individual investors:
- An increase in inflation beyond the Fed’s target of 2% complicates discussions about a possible pause in interest rate hikes and may lead to more restrictive monetary policies.
- Higher interest rates affect various asset classes. For example, bond prices may decline and stock markets may react with volatility.
- Expectations regarding future inflation have slightly weakened: inflation of around 3% is projected for the remainder of the year.
Overall, the rise in the CPI in June indicates a continued deviation from the Federal Reserve’s inflation targets. This increases uncertainties regarding the future monetary policy direction and makes upcoming decisions particularly important for investors.