Analysis: Tariff Impact Likely to Emerge, Accelerated U.S. Inflation Data Expected in June

July 13th: An analyst pointed out that following several months of low inflation, the price surge that U.S. consumers experienced in June might have slightly accelerated. This is because businesses have begun to pass on the increased costs of imported goods resulting from tariffs to consumers. Surveys of economists by institutions indicated that the prices of goods and services, excluding the more volatile costs of food and energy, rose by 0.3% in June, which was the largest increase in five months. The core Consumer Price Index (CPI) in May only witnessed a marginal 0.1% increase. While the report next Tuesday may only reflect a slight transfer of U.S. import tariffs costs to consumers, many economists anticipate that inflation will gradually pick up over time. Meanwhile, many businesses are hesitant to raise prices as U.S. consumers, facing a cooling job market, are more focused on spending restraint, thus creating a delicate balance. (FXStreet)