US inflation picks up in June to 2.7%, matches estimates

The US Consumer Price Index (CPI) rose in line with expectations during June, reflecting the impact of tariffs imposed by President Donald Trump's administration on the prices of goods.

The annual consumer price inflation rate rose to 2.7% in June, in line with expectations, compared to 2.4% in May, official data released Tuesday showed.

The core CPI inflation (excludes volatile food and energy prices) increased 2.9%, missing expectations of a 3% increase from 2.8% in May.

The CPI increased 0.3% month-on-month (MoM) in June after edging up 0.1% in May. Moreover, the core inflation rose 0.2% MoM. The monthly increase was driven by a 1.3% rise in fuel prices and a 0.6% rise in healthcare services.

In addition, housing costs rose 0.2% MoM and 3.8% year-on-year (YoY), while new and used car prices fell 0.3% and 0.7% MoM, respectively.

Food prices in the US rose 0.3% MoM in June and 3% YoY. Energy prices rose 0.9% MoM, driven by higher gasoline prices.