July 15 (UPI) — The U.S. Bureau of Labor Statistics announced Tuesday that consumer prices moved upwards in June, with the true impact of President Donald Trump’s tariffs looming on the horizon.
The June Consumer Price Index, or CPI, went up 0.3% on a seasonally adjusted basis in June, up 0.1% in May, while over the past year, the all-items index increased 2.7% before being seasonally attuned.
Apparel prices, expected to be pinched by the tariffs, did rise 0.4%, and household furnishings increased 1% for the month.
On the other hand, vehicle prices fell to 0.3% on new items, while used automobiles dropped down 0.7%.
Shelter prices only inched up 0.2% for June, but according to the BLS it was “the primary factor in the all-items monthly increase.”
With the overall rise in prices, real average hourly earnings for all employees sank 0.1% percent from May when seasonally adjusted, due to an increase of 0.2% in average hourly earnings when mixed with the aforementioned CPI rise.
Real average weekly earnings tumbled 0.4% in June when measured by the change in real average hourly earnings combined with a dip of 0.3% in the overall average workweek.
As for the 12-month inflation rate, it rose due to the CPI to 2.7%, the highest since February and above the 2% targeted by the Federal Reserve.
Core inflation also rose 0.2% in June, but remained below the anticipated 0.3% level, and the annual rate stood at 2.9% as expected.
CNBC spoke with Allianz Trade Senior Economist North America Dan North, who said, “It’s really hard to point to this report or any details in the report and say, ‘Aha! See what’s happened to prices because of tariffs.'”
“You get these pretty massive tariff increases,” he continued. “It’s bound to pass through to the consumers, and I still think it will, but it’s not in this report so far.”