June’s consumer price index showed how the Trump administration’s tariff policies have been affecting prices.
The consumer price index rose 2.7% on an annual basis in June 2025, up from 2.4% in May, according to the Bureau of Labor Statistics.
However, the full impact of President Donald Trump’s tariffs is still to come, according to economists.
The annual inflation rate ticked higher in June, in line with expectations, as lower prices at the gasoline pump somewhat offset higher prices at the grocery store.
Economists said they expect the full impact from the Trump administration’s tariff agenda to raise consumer prices more in the months ahead — but they said trade policies have already started to noticeably affect inflation.
The consumer price index, a key inflation barometer, rose 2.7% in the 12 months through June, up from 2.4% in May, the Bureau of Labor Statistics said Tuesday.Tariffs’ inflationary effect
President Donald Trump’s tariffs continue to work their way through the U.S. economy, even as the risk of further escalation grows.
Trump announced Saturday that the U.S. will impose 30% tariffs on the European Union and Mexico starting Aug. 1. On Monday, Trump threatened to impose « secondary tariffs » on Russia’s trade partners, « at about 100%.
