Payam Javan: In June, U.S. consumer inflation rose to 2.7 % year-over-year, up from May’s 2.4 % and slightly above economists’ forecasts of 2.6 %. Monthly CPI growth came in at 0.3 %, largely driven by a rebound in food costs, while energy prices also contributed following a recent dip. Core CPI (excluding food and energy) climbed to 2.9 %, consistent with expectations — though it was somewhat tempered by weak used-car sales.

The uptick signals initial effects from President Trump’s imposed tariffs, which are now beginning to filter through to consumer prices. Though businesses have absorbed much of the tariff cost so far, several analysts warn that sustained or additional trade duties could further accelerate inflation. Meanwhile, the Federal Reserve appears cautious about rate cuts, despite presidential pressure, citing uncertainty about tariffs’ full impact. Market reaction was mild: stock indexes nudged higher, treasury yields dipped slightly, and the dollar remained largely unchanged.