US consumer price inflation accelerated in line with analysts' expectations last month, government data showed, as policymakers grapple with the impact of President Donald Trump's tariff increases on the economy.
The consumer price index rose 2.7% in June compared to the same month last year, following a 2.4% increase in May as energy costs rose, the Labor Department said.
Other sectors that saw cost increases included household furnishings and apparel, two sectors that experts monitor for signs of rising costs following Trump's tariffs this year.
While Trump imposed 10% tariffs on nearly all of his trading partners in April and separately imposed higher duties on steel, aluminum, and auto imports, US officials dismissed warnings that these tariffs could lead to higher prices.
Economists warn that higher tariffs could increase inflation and negatively impact economic growth, but US Treasury Secretary Scott Besant played down those expectations.
The consumer price index rose 0.3% in June compared to the previous month, slightly up from the 0.1% increase in May.
Excluding the volatile food and energy sectors, the consumer price index rose 0.2% month-on-month, also improving from May.
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