By Jeff Cox
June’s inflation report will be looked at not so much for what the headline numbers show than what’s in the underlying data, especially whether tariffs are starting to have an impact.
The consumer price index, due Tuesday at 8:30 a.m. ET, is expected to show an uptick in both headline and core readings, with the latter still well above the Federal Reserve’s target.
But what will really matter is the extent to which President Donald Trump’s tariffs are hitting prices and potentially driving inflation higher.
“June is the first reading [when] these tariffs are really going to start to bite in a very noticeable way,” said Chris Hodge, head U.S. economist at Natixis CIB Americas.
CPI, which measures a broad basket of goods and services across the U.S. economy, is expected to show a 0.3% monthly increase for both headline and core rates, with the latter excluding volatile food and energy costs. On an annual basis, the index is expected to show a 2.7% headline reading and 3% on core.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
This article originally appeared here and was republished with permission.
