June CPI: Inflation ticked higher as the Fed weighs interest rate cut timing | Fox Business

The Big Money Show hosts talk the Federal Reserves handling of monetary policy and the fate of Jerome Powells role as Fed chair. Inflation increased in June and moved further away from the Federal Reserve's target rate as central bank policymakers prepare to meet later this month amid PresidentDonald Trump'scalls for interest rate cuts. The Bureau of Labor Statistics on Tuesday said that theconsumer price index (CPI)– a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.3% in June compared with last month, while it was up 2.7% on an annual basis. Those figures were slightly higher than the estimate of economists polled by LSEG. Both marked accelerations from last month, when the monthly increase was 0.1% and the annual figure was 2.4%. So-called core prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, were up 0.2% from the prior month and 2.9% from a year ago. Those figures were slightly cooler than economists' expectations. As with the headline number, the core numbers ticked higher compared with May, wheninflation rose 0.1%on a monthly basis and 2.8% on an annual basis. High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly difficult for lower-income Americans, because they tend to spend more of their already-stretched paychecks on necessities and have less flexibility to save money. Food pricesrose 0.3% in June from the prior month and were 3% higher on an annual basis. The food at home index rose 0.3% in June from a month ago and is up 2.4% on an annual basis, while the food away from home index increased 0.4% on a monthly basis and is 3.8% higher than a year ago. Egg prices declined 7.4% in June, continuing a cooling trend after the industry saw rapid price growth last year due to an avian flu outbreak, which left prices still 27.3% higher than a year ago. The index for meats, poultry and fish rose 1% on a monthly basis and is up 4.1% from last year. The dairy index declined 0.3% from a month ago and is up 0.9% compared with a year ago, while the fruits and vegetable index was flat in June and is 0.7% higher than last year. Energy pricesincreased 0.9% in June after falling by 1% in May, driven by 1% increases in the gasoline and energy indices last month, as well as a 0.5% increase in the natural gas index. The energy index fell 0.8% over the last year while the gasoline index is down 8.3% from a year ago, although the electricity index is up 5.8% and natural gas has risen 14.2% in the last year. Housing pricesrose by 0.2% in June and was the primary factor in driving the overall CPI increase. Over the last year, the shelter index increased 3.8%. This is a developing story. Please check back for updates.