Inflation Creeps Up As Trump Prepares Major Tariff Rollout

Inflation ticked up last month, coming in slightly above economists’ predictions for the June Consumer Price Index report as President Donald Trump prepares to impose tariffs on countries around the world.

In June, the Consumer Price Index rose 2.7% year-over-year and was up 0.3% from May, according to the monthly report released by the Bureau of Labor Statistics on Tuesday. The June inflation reading was just above economists’ predictions of 2.6% after each of the readings from February through May came in lower than expected, Reuters reported.

The White House celebrated the report, saying it reflects another month of inflation remaining “on the right track.”

“Since President Trump took office, core inflation has come in below or at economists’ expectations every single month,” the White House’s official “Rapid Response” X account stated.

Treasury Secretary Scott Bessent said on Tuesday morning that the “substantial price level rise” from tariffs that was predicted by experts “just hasn’t happened.”

.@SecScottBessent: "I think one thing that Wall Street, a lot of economists… got wrong early on was that tariffs were going to cause a substantial price level rise, which just hasn't happened." pic.twitter.com/zwTCLsPq2l

— Rapid Response 47 (@RapidResponse47) July 15, 2025

The price index for shelter, which rose 0.2%, was the leading driver “in the all items monthly increase,” the BLS report stated. Gas prices rose 1%, and the energy index jumped 0.9% month-over-month. The food index, meanwhile, was up 0.3%.

Economists have been predicting for months that President Trump’s large-scale tariffs, some of which have already gone into effect on America’s biggest trading partners — China, Canada, and Mexico — would result in higher inflation levels and likely be felt by Americans over the summer. Trump has informed many more countries that they will be hit by the president’s “Liberation Day” tariffs, set to take effect on August 1. Most of the tariffs were initially scheduled to take effect in April, but Trump granted a 90-day pause for further trade negotiations.

Tuesday’s inflation report comes two weeks before the Federal Reserve is scheduled to meet again to discuss interest rates. President Trump has been pressuring Fed Chair Jerome Powell to lower interest rates, citing the better-than-expected inflation reports as justification for reducing borrowing costs. Last week, amid reports that Powell was considering resigning, the Trump administration said that a resignation from Powell would “be the right decision for America, and the economy will boom.”

“I think he’s doing a terrible job,” Trump said last Friday. “I think we should be 3 points lower, interest rates. He’s costing our country a lot of money.”

The Fed is expected to leave its benchmark overnight interest rate between 4.25% and 4.50% at the July meeting, as inflation hovers above the Fed’s 2% target.