Inflation rose in June to 2.6 percent annually, higher than economists expected. The Federal Reserve’s preferred gauge, the personal consumption expenditures (PCE) price index, showed prices increasing as tariffs on imported goods pushed costs up. Vanguard analysts said, “Core goods … should reflect substantial growth due to tariffs, especially on sensitive categories like household furnishings and equipment, recreational goods, apparel, and motor vehicle parts.”
https://thehill.com/business/5429332-inflation-trump-tariffs-impact/
Fed Chair Jerome Powell warned inflation might linger longer than expected. “The inflationary process may take longer to unwind,” he said, even though tariffs are a major driver.
https://nypost.com/2025/07/31/business/feds-preferred-inflation-gauge-ticks-up-as-tariffs-lift-prices-casting-cloud-on-september-rate-cut/
Prices for furniture, appliances, and computers jumped notably in June. Tariffs are hitting consumer wallets in real time. The Fed keeps rates high, but relief looks distant. Tariffs keep feeding inflation’s fire.