Inflation Rises, With Tariffs Seen as Culprit

Inflation rose last month to its highest level in four months as the cost of gas, food, and groceries rose, reversing several months of cooling price pressures, per the AP. Details:

• Consumer prices rose 2.7% in June from a year earlier, the Labor Department said Tuesday, up from an annual increase of 2.4% in May. On a monthly basis, prices climbed 0.3% from May to June, after rising just 0.1% the previous month.
• The Wall Street Journal sees the increases as a sign that companies are starting to pass along the cost of tariffs to consumers.

• Excluding the volatile food and energy categories, core inflation increased 2.9% in June from a year earlier, up from 2.8% in May. On a monthly basis, it picked up 0.2% from May to June. Economists closely watch core prices because they typically provide a better sense of where inflation is headed.
• All in all, the numbers came in as forecast by a Dow Jones poll, notes CNBC. Dow futures were down slightly, a fraction of a percent.