U.S. Consumer Prices Increase
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U.S. consumer prices likely picked up in June, potentially marking the start of a long-anticipated, tariff-induced increase in inflation that has left the Federal Reserve cautious about resuming its interest rate cuts.
US consumer inflation picked up in line with analyst expectations last month, government data showed Tuesday, as policymakers try to gauge how President Donald Trump's ever-growing list of tariffs is affecting the economy.
Fresh data Tuesday from the consumer-price index showed ”some early signs” of the impact from tariffs, but inflation on the whole remained “muted,” according to Goldman Sachs Asset Management’s Kay Haigh.
The president is heaping criticism on Fed Chairman Jerome Powell as markets await the latest inflation numbers.
The EUR/USD pair trades with a soft tone in the 1.1640 region, with the US Dollar entering the American session with moderate strength. The Greenback suffered a short-lived downturn following the release of United States (US) inflation figures.
The next major U.S. inflation report is set to arrive on Tuesday in the form of the consumer-price index for June, and will inform investors as to whether President Donald Trump’s tariff wars with other countries have had a sizable impact on inflation.