At the highest level of the last four months, inflation in the US has climbed in June, suggesting that the impact of Trump’s duties on the economy is becoming increasingly felt.
Specifically, the consumer price index rose 0.3% on a monthly basis, pushing the annual rate to 2.7%, which is the highest level since February, according to data released by the US Department of Labor Tuesday.
The structural index, excluding the volatile prices of fuel and food, has also increased, but at a softer rate, up 0.2% compared to May and 2.9% annually, accelerating from 0.1% and 2.8% recorded respectively in the previous month.
The figures were generally aligned with economists’ estimates, as gasoline prices rose (+1%) for the first time in the last five months, while prices have increased in other basic categories of goods and services.
Food prices rose by 0.3%, as in May, while grocery prices were also raised, mainly due to a 1.4% increase in non -communal drink prices and the 2.2% jumping price of coffee. Fruit and vegetable prices increased by 0.9% and beef by 2%.
It is noted that economists and investors have expressed fears that the range of duties announced by Trump to major US partners will lead to inflation.
The fact that inflation has been maintained at relatively relatively levels in recent months has been attributed to various factors, such as continuing residential prices and other basic services, as well as in recent decline in gas and travel prices (partly due to weakened demand) Duties in force.
Economists have also warned that price increases from duties will not appear immediately, nor abruptly, but will probably begin to hit the pocket of consumers later in the year.
Source: Skai
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