Inflation heats up in June as President Trump’s tariffs start to bite
Inflation picked up steam last month amid early signs that President Trump’s tariffs are beginning to have an effect on the prices shoppers see in stores.
Consumer prices in June were up 2.7% from a year ago, according to a report Tuesday from the Labor Department. That’s a larger annual increase than the month before.
Prices rose 0.3% between May and June, also a sharper increase than the previous month.
Rising rents were the main driver of inflation in June. But the price of clothing, appliances and toys also jumped — which likely reflects the effects of import taxes. Clothing prices rose 0.4% while the price of appliances and toys jumped nearly 2%.
Energy and food costs were also higher in June, while the price of new and used cars and airline tickets was down.
The president has imposed tariffs of at least 10% on nearly everything the U.S. imports, with higher taxes on goods from China. The government collected $27 billion from tariffs in June — a four-fold increase from the same month a year ago.
The average tariff on imported goods is now the highest it’s been since the Great Depression. And Trump has threatened to impose even higher taxes on goods from many countries, beginning on Aug. 1.
Falling energy costs had helped to keep overall inflation in check in recent months. But gasoline prices rebounded in June. And electricity costs jumped by 1%, as hot summer weather kept air conditioners busy.
The uptick in inflation last month cements expectations that the Federal Reserve will hold interest rates steady when policymakers meet later this month, despite mounting pressure from the White House for lower rates. Investors still think a rate cut is likely in September.
Nike faces federal probe over allegations of discrimination against white workers
The federal agency for protecting workers' civil rights revealed Wednesday that it is investigating sportswear giant Nike for allegedly discriminating against white employees.
ICE can’t make warrantless arrests in Oregon unless there’s risk of escape, judge rules
U.S. immigration agents in Oregon must stop arresting people without warrants unless there's a likelihood of escape, a federal judge ruled Wednesday.
Trump’s EPA issues record low legal actions against polluters, watchdog group finds
The EPA enforced a record low number of environmental laws and regulations during the first year of President Trump's second term in office.
Researchers say no evidence of TikTok censorship, but they remain wary
Posts have been going viral on social media accusing TikTok's new owners of suppressing content, but eight academics examined the issue and found no evidence to support the claims.
Newly released court records reveal misconduct inquiry into federal judge
A federal judge said he retired to speak out about threats to the rule of law. Newly released court orders suggest his exit coincided with a misconduct inquiry that ended when he stepped down.
Moltbook is the newest social media platform — but it’s just for AI bots
A new message board for artificial intelligence agents has prompted some strange conversations, and existential questions about the inner lives of bots.
