Tariffs Push Inflation Higher in US and UK

US inflation climbed to 2.7% year-over-year in June, the highest since February, with consumer prices rising 0.3% monthly and core inflation reaching 2.9%. The increase is partly attributed to President Trump's expanded tariffs, which have raised costs for imported goods such as appliances, clothing, and groceries, with companies like Walmart, Nike, and Mitsubishi passing on these costs to consumers. Producer Price Index data for June showed no monthly change and a 2.3% annual rise, suggesting some underlying price pressures may be moderating. Trump plans additional tariffs, including on pharmaceuticals and a 19% duty on Indonesian goods, while downplaying tariff impacts on inflation. In the UK, inflation also surged to its highest level in over a year, mainly due to increased costs for food, transportation, and clothing, with items like cereal, cakes, and cheddar cheese contributing. These developments underscore the ongoing influence of tariffs and supply chain issues on consumer prices in both the US and UK.