Inflation jumped last month hitting its highest mark in months amid Trump’s tariffs threat - Inflation rose 0.3 percentage points in the last month and 2.7 percent in the past year

The prices for food at home rose 0.3 in June, while food away from home, meaning restaurants, ticked up 0.4% on a monthly basis. Notably, the Trump administration has recently imposed a 17% tariff on Mexican tomatoes. The energy index edged up 0.9% in June, as gasoline prices jumped 1% over the month but shed 7.9% for the year.

President Donald Trump's repeated calls for aggressive rate cuts collided with economic reality Tuesday, as June's rising inflation dynamics offered a win—at least temporarily—for Federal Reserve Chair Jerome Powell's cautious stance.

Stocks dipped on Tuesday as new consumer price index data showed rising inflation and the Aug. 1 deadline for Trump’s tariff campaign loomed.

Clothing prices jumped by 1% in June, contributing to a rise in inflation during the month. Imported clothing is one area where the effects of tariffs are beginning to be felt by shoppers. Inflation picked up steam last month amid early signs that President Trump's tariffs are beginning to have an effect on the prices shoppers see in stores.