US consumer inflation picks up to 2.7% as tariff scrutiny grows

US consumer inflation accelerated in line with analyst expectations last month, government data showed Tuesday, as policymakers try to gauge how President Donald Trump's ever-growing list of tariffs is affecting the economy.

The consumer price index (CPI) was up 2.7 percent from a year ago in June, rising from the 2.4 percent figure in May as energy costs rose, said the Department of Labor.

Other areas that saw cost increases included household furnishings and apparel -- both segments that experts are eyeing for signs of cost hikes after Trump's sweeping tariffs this year.


While Trump imposed a 10 percent tariff on almost all trading partners in April and separately slapped steeper duties on imports of steel, aluminum and autos, US officials have pushed back against warnings that these could spark price increases.

Economists caution that tariff hikes could fuel inflation and weigh on economic growth, but US Treasury Secretary Scott Bessent has labeled such expectations "tariff derangement syndrome."

CPI rose 0.3 percent in June from the previous month, an uptick from the 0.1 percent increase in May as well.

Excluding the volatile food and energy segments, CPI climbed 0.2 percent on-month, picking up from May too.