Consumer prices in the U.S. ticked up slightly in June as experts are saying the first signs of the Trump administration tariffs are beginning to show. While headline inflation rose to an annualized 2.7 percent - up from 2.4 percent in May -, the core index excluding more volatile food and energy prices stood at 2.9 percent, compared to 2.8 percent the month before. According to data published by the Bureau of Labor Statistics on Tuesday, consumer prices increased 0.3 percent in June on a monthly basis, which is a acceleration from an 0.1-percent increase in May. The figures were 0.2 percent and 0.1 percent for core inflation, respectively.
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Apart from gasoline and some food subcategories, the items which saw the highest inflation in the United States in June were those that are typically imported. The price of applicances was up 1.9 percent last month, while household items increased in price by 1 percent and toys even by 1.8 percent as experts are saying that the first signs of the Trump administration's tariffs are becoming visible. More increases above one percent month-over-month could be seen for tools, sporting goods and computers.
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The Consumer Price Index for All Urban Consumers (CPI-U) is a complex construct based on the collection of about 94,000 prices and 8,000 rental housing units quotes each month. As the the most cited inflation gauge in the United States, the CPI-U is designed to measure the changes in prices of all goods and services purchased for consumption by urban households, representing over 90 percent of the U.S. population. Different expenditure items are classified into more than 200 categories, arranged into eight major groups and weighted based on their actual share of consumption expenditure. That means increases in rent or food prices will have a larger impact on the overall CPI than price increases in smaller spending categories, such as apparel.
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