US Inflation Reaches New Peak
In June 2025, inflation in the United States has increased again, now standing at 2.7%. This marks the highest level since February and signals an acceleration compared to 2.4% in May. Month-on-month, a rise in the consumer price index (CPI) of about 0.3% is expected – the strongest increase in five months – compared to 0.1% in May.
Influences on Inflation
A major factor contributing to this development is the higher import costs. Newly imposed tariffs significantly affect the prices of furniture, toys, leisure items, and cars. Rising gasoline prices also contribute significantly to the increase in inflation. Core inflation, excluding food and energy, is expected to rise slightly and likely be around 3%, up from 2.8% over three months.
Market Reactions
These inflation expectations are impacting the markets: The Pound Sterling is trading cautiously near a three-week low of around 1.3430 USD. Investors are betting on a further rise in inflation in the US while closely monitoring the British consumer price index. The inflation trend is crucial for investors, particularly concerning potential monetary policy decisions by central banks – both in the US and the UK – as rising inflation rates often lead to tighter interest rate policies.
This dynamic underscores the significance of current inflation figures for the foreign exchange markets and expectations for monetary policy worldwide.