Tariff Impact Seen Ending Streak of Benign US Inflation Readings

Economists have long been warning of a tariff-driven boost to US inflation. The next report on consumer prices will put their conviction to the test.

After four months of overestimating readings on the consumer price index, forecasters are predicting an acceleration in June data due from the Bureau of Labor Statistics on Tuesday. Advances in tariff-exposed categories including furniture, toys and recreational goods, as well as cars, are seen putting an end to the streak of benign figures.

It’s a tough position to be in for the Federal Reserve, which has defended holding interest rates steady this year in ...