The United States experienced a notable increase in inflation in June 2025, with the annual Consumer Price Index (CPI) rising to 2.7%, marking the highest level since February. This represents the second consecutive monthly acceleration, up from 2.4% in May, and aligns closely with economists’ forecasts.
The monthly CPI showed a 0.3% increase in June, the largest rise in five months, indicating a rebound driven mostly by higher prices in food, transportation services, and used cars and trucks. Food prices increased by 3% compared to 2.9% in May, while transportation services experienced a 3.4% rise versus 2.8%. Meanwhile, energy costs declined less sharply than before, with gasoline prices falling 8.3% compared to a 12% drop previously, and fuel oil costs down 4.7% versus 8.6% earlier. Notably, natural gas prices continued their elevated trend, increasing by 14.2%.
Core inflation, which excludes the more volatile food and energy sectors, edged higher to 2.9% annually from 2.8%, slightly underperforming the forecasted 3%. On a monthly basis, core CPI grew by 0.2%, below the anticipated 0.3% gain.
Economists attribute part of the price pressure to the gradual impact of tariffs imposed on imports, particularly affecting categories like automobiles and recreational goods. This tariff influence, combined with a rebound in gasoline prices, has contributed to inflation’s recent resurgence after a period of relative moderation earlier in the year.
This inflation uptick arrives amid ongoing Federal Reserve efforts to control price rises without derailing economic growth, as policymakers monitor these trends closely ahead of upcoming interest rate decisions.
