
US inflation heats up to 2.7% — a possible sign that Trump tariffs have begun to sting
The Consumer Price Index rose 2.7% in June from the year before, matching economists' expectations but coming in above the previous month's 2.4% reading, the Bureau of Labor Statistics said Tuesday.
US inflation rose in line with forecasts in June.
Stephen Yang
Core CPI, which excludes volatile food and energy prices, gained 2.9% from a year earlier, above the previous month.
On a month-to-month basis, headline inflation rose 0.3%, in line with forecasts but above the previous month's 0.1% jump.
The indexes for used cars and trucks and new vehicles were among those that saw the most substantial declines in June, according to the Bureau of Labor Statistics.
That came as a surprise for economists, who were calling for upticks in auto and apparel prices — two of the sectors that are hardest hit by tariffs.
This story is developing. Please refresh for updates.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


USA Today
11 minutes ago
- USA Today
Coffee prices are already high. Trump's tariffs on Brazil could raise them.
President Donald Trump has threatened a 50% tariff against Brazil, a major producer of green coffee beans. That could lead to higher coffee prices. The best part of waking up? If you're pinching pennies, it may no longer be a fresh cup of coffee. Trump on July 9 threatened a 50% tariff against Brazil, one of the U.S.'s largest suppliers of green coffee beans, starting Aug. 1. That could spell trouble for coffee drinkers, who have already seen price hikes in recent years related to supply chain constraints. "Americans are going to feel the impact of the tariffs in their morning brew. That's a very significant tax on the leading producer of coffee,' said food economist and Michigan State University professor David Ortega, adding that consumers would likely notice higher prices within months of the new tariffs going into effect. Why are coffee prices high right now? Tariffs threaten to add more pressure to an industry already navigating a recent price surge fueled by droughts in countries like Brazil and Vietnam. As of June, the average price of a pound of ground roast coffee cost $8.13, up from $6.25 the year prior and $4.52 in 2020, per the Bureau of Labor Statistics. 'Inventories were down, but demand is as high as ever,' said Ron Kurnik, owner of Superior Coffee Roasting, a roastery in Sault Ste. Marie, Michigan. Kurnik, 49, said a pallet of imported green coffee beans that would have cost him roughly $6,000 a year ago runs closer to $9,000 today. He said he's also facing higher packaging costs, since most of his packaging is shipped in from China, due to tariffs. That's translated to higher prices for his customers. As of June 1, a 12-ounce bag of Superior Coffee Roasting coffee costs $13.99, up from $11.99. Kurnik warned the nearly 17% increase may be just the first in a series of pricing changes, especially if Trump's tariffs on Brazil hold. 'About one-third of our purchasing goes to coffee from Brazil. It's definitely one of our staples,' he told USA TODAY. His roastery is far from the only business that leans heavily on imports from Brazil. About 80% of U.S. unroasted coffee imports were sourced from Latin America in 2023, according to the U.S. Department of Agriculture, with Brazil making up roughly 35% of those imports. To keep costs low, Kurnik is looking into sourcing more coffee from alternative countries like El Salvador and Colombia. He said buying from local producers isn't an option; while Hawaii and Puerto Rico grow coffee, the quantities are too low and prices too high to completely replace imports. 'It's just going to be a really bumpy ride trying to navigate where we're buying, how much we're going to be buying," Kurnik said. But 'I'm still optimistic. If you're not, you shouldn't be owning a business.' The impacts of higher coffee prices would be far-reaching in the U.S. The National Coffee Association estimates two-thirds of American adults drink coffee each day, with consumers spending nearly $110 billion on the drink each year. Price hikes are expected to be most noticeable in grocery stores, with coffee shops seeing less of an impact. Large coffeehouse chains tend to lock in long-term contracts with a diverse array of suppliers, and the final price of a store-bought latte is influenced by far more than just the price of coffee beans. "There's a lot more value-added that you're paying for at a coffee shop," Ortega said. "So it really depends on the type of coffee you're buying, where it's coming from." Still, some coffeehouses' prices are going up. Kurnik said his coffee shop, Superior Cafe, hiked prices on coffee-based drinks anywhere from 25 cents to 50 cents in June. Trump wants more factory jobs in the US. But is there anyone to hire? Other morning staples are getting more expensive Other breakfast staples are also susceptible to higher prices in the months to come. Orange juice prices could be pressed higher if tariff threats hold, as Brazil is a top supplier to the U.S. Plus, high demand and curbed production from record-high temperatures in Japan are driving up prices for matcha, another staple at coffee shops, according to Reuters. Ortega said other caffeinated drinks, such as energy drinks or soda, could see a boost from higher coffee prices on the margin, but 'there's really no easy substitute for a morning cup of coffee for most people.' 'When it comes to our coffee culture, coffee is the predominant source of caffeine we get in the morning in the U.S.,' he said. This year's coffee prices will ultimately depend on whether tariffs hold. In June, Agriculture Secretary Brooke Rollins told the Wall Street Journal the Trump administration may consider exceptions for produce that can't easily be grown within the U.S., including coffee.

Business Insider
12 minutes ago
- Business Insider
Crypto prices are jumping on hopes that Congress is about to mark a major legislative win for the market
Crypto prices rose on Wednesday as the market looked toward the possible passage of a landmark crypto bill in the US House of Representatives. Halfway through crypto week, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act appears to have garnered enough support to pass. The news sparked momentum for many cryptos, including Bitcoin, Ethereum and Solana, as well as crypto stocks Circle and Coinbase. Bitcoin jumped 2% around midday, ethereum was up almost 7%, and Circle and Coinbase rallied 14% and 3%, respectively. Despite 12 Republican lawmakers initially hesitating to vote in favor of the stablecoin bill, President Donald Trump said late Tuesday that they had changed their minds. In a Truth Social post, he said that eleven members of Congress had agreed to vote for the Genius Act to pass and would do so the following morning. Trump has also said that House Speaker Mike Johnson "looks forward to taking the Vote as early as possible." The Genius Act would establish a federal regulatory framework for stablecoins, a type of crypto pegged to a fiat currency such as the US dollar. The latest burst of momentum for the bill has pushed up stocks with high stablecoin exposure, including Circle Internet Group and Coinbase Global. Two other crypto bills, the CLARITY Act and Anti-CBDC Surveillance State Act, are also expected to be voted on this week. The former would establish a regulatory framework for digital assets in the US, and the latter would prevent the Federal Reserve from issuing its own currency. These bills haven't progressed as quickly as the Genius Act. However, House Majority Leader Steve Scalise has stated that he expects Congress to vote on all three on Wednesday. "We're back on track. And exactly what the combination will be, we're talking through that, but all three bills will be encompassed in the work we do today," he said. House Majority Whip Tom Emmer added that he believes all three bills will pass when they come to a vote, though the exact timing remains unclear. "With Bitcoin approaching new all-time highs, we anticipate a confluence of factors driving renewed momentum in crypto," stated James Wo, founder and CEO of Digital Finance Group. "The combination of increasing regulatory clarity and favorable macroeconomic conditions could mark a pivotal moment for industry growth and mainstream adoption."


Newsweek
12 minutes ago
- Newsweek
Map Shows Cities Hit by the Highest—And Lowest—Inflation
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. As the national inflation rate ticks up to 2.7 percent—its highest point since February—WalletHub's July 2025 analysis of inflation trends across 23 major U.S. cities highlights stark regional differences in cost-of-living pressures. How It Was Calculated WalletHub analyzed the effect of inflation across the United States by examining 23 major metropolitan areas using two key Consumer Price Index (CPI) metrics. The study compared the most recent CPI data available from the Bureau of Labor Statistics with figures from two months earlier and one year ago, providing a view of both short-term and long-term inflation trends. What To Know While some cities are experiencing a resurgence of price increases, others are enjoying notable economic stability, according to WalletHub's report. The Seattle-Tacoma-Bellevue area currently faces the steepest short-term inflation spike among all surveyed metro areas, with a 1.4 percent rise over the past two months. It also saw a 2.7 percent year-over-year increase. Boston and St. Louis followed closely with 1.1 percent increases over the short term. San Diego experienced the highest year-over-year inflation rate at 3.8 percent, followed by Chicago and New York, each with a 3.5 percent increase. At the other end of the spectrum, Phoenix, Arizona, experienced the least inflation growth, with a 0.2 percent increase compared to one year ago and over the past two months. Dallas and Anchorage also ranked among the cities with the lowest inflation, with two-month price changes of just 0.1 percent. What People Are Saying Sergey Sarkisyan, an assistant professor of Finance at Fisher College of Business, The Ohio State University, said in the report: "Consumer demand and spending are usually the main factors when we talk about recent inflation. Opening after COVID and excessive spending following stimulus payments contributed to inflation worldwide." He added: "The current inflation rate is slightly higher than the target of 2 percent, but it continues declining. All else equal, current interest rates should reduce inflation further, but other factors, such as tax and tariff policy, can further affect inflation forecasts." Huiying Chen, an associate professor in the University of Central Oklahoma's Department of Economics, said in the report: "Higher tariff expectations, trade wars, conflicts, the gradual adjustment of supply chain worldwide, and other economic uncertainty contribute to inflationary pressure. In the last few months, grocery prices, housing, people and businesses' expectations on higher inflation due to the potential higher tariffs and import prices drive up the overall price level." What Happens Next WalletHub periodically releases updates for its "Changes in Inflation by City" report. Meanwhile, Newsweek also recently mapped America's most and least stressed cities, based on a separate WalletHub report. This analysis, which ranked cities based on four main factors—Work Stress, Financial Stress, Family Stress, and Health & Safety Stress—found that Detroit ranked as the most stressed city in the 2025 study.