US Inflation Expected to Accelerate in June Over Tariffs

Economists have long warned of a tariff-driven boost to US inflation, and the next report on consumer prices will put their conviction to the test. For four months, consumer price index readings from the US Bureau of Labor Statistics have come in cooler than what economists predicted, and those forecasters are again warning of acceleration, with June data due Tuesday. Economists see price rises in tariff-exposed categories including furniture, toys, recreational goods and cars.

There’s widespread consensus among Federal Reserve officials and private-sector forecasters that inflation will turn higher during the summer as businesses start passing on President Donald Trump’s tariffs to consumers. While many firms chose to initially shield customers by stocking up on inventories in advance or even absorbing part of the higher costs at the expense of lower margins, some are now running out of options.