Chicago – July 16, 2025
Inflation picked up steam last month amid early signs that President Trump’s tariffs are beginning to have an effect on the prices shoppers see in stores.
Consumer prices in June were up 2.7% from a year ago, according to a report Tuesday from the Labor Department. That’s a larger annual increase than the month before.
Prices rose 0.3% between May and June, also a sharper increase than the previous month.
Rising rents were the main driver of inflation in June. But the price of clothing, appliances and toys also jumped — which likely reflects the effects of import taxes. Clothing prices rose 0.4% while the price of appliances and toys jumped nearly 2%.
Energy and food costs were also higher in June, while the price of new and used cars and airline tickets was down.
The president has imposed tariffs of at least 10% on nearly everything the U.S. imports, with higher taxes on goods from China. The government collected $27 billion from tariffs in June — a four-fold increase from the same month a year ago.
