US Consumer Price Index Rises 2.7% Annual Rate in June

Inflation in the U.S. is rising, with the Consumer Price Index (CPI) expected to increase 2.7% year-over-year in June, up from 2.4% in May, signaling a creeping inflation trend. Core CPI, which excludes food and energy, is also forecasted to rise to 3% annually, reflecting some tariff passthrough effects from President Donald Trump's trade policies, including recently announced tariffs on the European Union and Mexico. The Federal Reserve is closely monitoring these inflation trends, with most officials anticipating possible interest rate cuts later this year, though the timing remains uncertain amid concerns about tariffs' persistent inflationary effects. Trump has criticized Fed Chair Jerome Powell for not lowering rates but has not removed him, while reportedly considering naming a successor before Powell's term ends in 2026. The upcoming inflation data release is expected to influence the U.S. Dollar and markets broadly, with investors and policymakers attentive to any deviations from forecasts that could impact monetary policy decisions and financial markets. Analysts warn that inflation may move further away from the Fed’s 2% target, increasing the likelihood of more restrictive monetary policy in response to tariff-driven price pressures.