US inflation rebounded in June to highest level in four months

CNN— US inflation heated back up in June, rising to its highest level in four months, as price increases — including those from tariffs — packed a bigger punch.

Consumer prices rose 0.3% last month, pushing the annual inflation rate higher to 2.7%, the highest since February, according to the latest Consumer Price Index data released Tuesday by the Bureau of Labor Statistics.

Tuesday’s data came right in line with what economists were expecting, as gas prices rose for the first time in five months and other prices increased in key services and goods categories.

Excluding gas and food, which tend to be quite volatile, core CPI rose 0.2% from May and 2.9% for the 12 months ended in June, marking an acceleration from 0.1% and 2.8%, respectively, the month before.

Stocks moved higher after the report, and at the opening bell the Dow ticked up slightly, while the S&P 500 gained 0.4% and the Nasdaq Composite gained 0.8%.

In recent months, President Donald Trump has enacted a sweeping trade policy of tacking steep tariffs on most goods that come in to America.

The sheer breadth of the tariffs as well as the fits-and-starts approach to their implementation has roiled markets and caused heightened uncertainty among businesses and consumers as to how much prices would move higher.