According to a report by Xinhua News Agency, data released by the US Bureau of Labor Statistics on the July 15 shows that the US Consumer Price Index (CPI) rose by 2.7% year-on-year in June, exceeding market expectations and marking the largest year-on-year increase since February.
Excluding the more volatile food and energy prices, the core inflation rate in June grew by 2.9% compared to the same period last year.
Analysts attribute the rise in prices primarily to the US government's tariff policies this year, which include raising or threatening to raise tariffs on imports from major trading partners. Several analysts have warned that inflationary pressure is likely to intensify in the coming months. If the US government follows through on its recent threats to impose additional tariffs on multiple trading partners, the "tariff effect" could make inflation more severe in the second half of the year.
Addressing questions about tariffs and inflation at the White House, US President Donald Trump claimed that the inflation rate remains "very little" and "very much inside the margin," effectively asserting that there is "no inflation."
"There was very little inflation, as you know, the numbers were very good, very much inside the margin. So we've had no inflation. All we have is, we're making a fortune. We are taking in hundreds of billions of dollars. You saw we had a surplus of 25 billion dollars last month, which we haven't had in many many years," he said.
Related News:
Trump administration sues California over egg price
Trump announces 30 pct tariffs on EU, Mexican goods starting Aug. 1
Comment