Analyst: Are Tariff Effects Unstoppable? US Inflation Expected to Accelerate in June

According to a report by Jinse Finance, analysts have noted that after several months of low inflation, U.S. consumers may have experienced a slight acceleration in price increases in June, as businesses began passing on higher import costs related to tariffs to consumers. Surveys of economists by institutions indicate that prices for goods and services, excluding the more volatile food and energy costs, are expected to have risen by 0.3% in June—the largest increase in five months. In May, the core CPI edged up by just 0.1%. Although next Tuesday’s report may show that the cost of U.S. import tariffs has only been partially passed on to consumers, many economists expect inflation to gradually pick up as the year progresses. Meanwhile, many businesses remain hesitant to raise prices, as U.S. consumers have become more cautious with their spending following a cooling job market. This represents a delicate balance.