Annual inflation in the US rebounded 2.7% in June as tariffs begin to take effect

By Hannah Pérez

Consumer prices in the United States seem to begin to feel the effects of Trump tariffs. June inflation was the highest since February. Bitcoin jumped over USD $ 118,000 after an earlier reverse.

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• Bitcoin jumped over USD $ 118,000 after an earlier reverse.
• Consumer prices in the United States began to feel the effects of Trump tariffs.
• The annual June inflation was the highest since February, and month by month, 0.1% in May to 0.3%.
• BTC is less than 4% below its maximum of USD $ 123,000.

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The pockets of American consumers became more tight in June as Donald Trump’s tariffs began to take effect on prices.

The consumer price index (CPI), which measures the cost of a wide basket of goods and services, rose 0.3% in the month, placing the inflation rate at 12 months at 2.7% for the end of Junethe Office of Labor Statistics of the United States Labor Department reported Tuesday.

The monthly reading, which was in line with the expectations of economists, was higher in relation to 0.1% in May, while the annual inflation rate, also exceeding 2.4% of last month, was the highest since February, according to CNBC.

The underlying IPC, which excludes food and energy prices, increased 0.2% in June compared to 0.3% expected and 0.1% in May. The annual rate went to 2.9%, a figure that coincided with estimates but was higher with respect to 2.8% in May.

Effect of Trump’s tariffs

Observers have been warning that high tariff rates of Trump would force companies to increase consumer prices, which seems to begin to materialize.

Before June, inflation had been cooling during the year, with a general CPI at an annual rate of 3% in January and gradually progressing slower in the following months despite the fears of Trump’s commercial war.

While still cannot be deduced with certainty how much influence the tariffs had prices, there are signs that commercial policy is having an impact, said the news mentioned. The prices of clothing and domestic furniture, two areas sensitive to tariffs, recorded increases in June, which helped boost inflation.

It is likely that prices go up much more if these tariff rates enter into force, but it is not clear if that could happen and when, he wrote The Guardian. Trump announced more than a dozen nations last week, including Mexico, Canada, Brazil and the European Union, with an entry into force scheduled for August 1.

Bitcoin jumps over USD $ 118,000

The cryptocurrency market seemed to react positively to the inflation report in the United States. Bitcoin (BTC) emerged over the USD $ 118,000 after having retreated below USD $ 117,000 earlier on Tuesday in the midst of whale movements. The largest cryptocurrency captured a new historical price of USD $ 123,000 on Monday.

Other main digital currencies also saw signals of modest recovery after the news. Ethereum (ETH) registered a higher than 1% rise in the last 60 minutes towards USD $ 3,050, according to data from Coinmarketcap. While the market continues to reflect losses in the last 24 hours, the data shows a slightly bullish change in the last hour.

Investors are attentive to inflation data in search of signals that provide sufficient reasons for the Federal Reserve (FED) for a cut of interest rates at the end of this year. The president of the Central Bank, Jerome Powell, have refused to give in arguing that you must wait to see before the impact that the tariffs will have. Trump, in turn, has insisted on a cut and threatened to say goodbye to Powell. According to reports, you will probably appoint another person when you expire your mandate next year.

BTC changes hands around USD $ 118,300 At the time of writing these lines, a loss of 2.6% in 24 hours but still a gain of almost 9% in the week.

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Hannah Estefanía Pérez / Diariobitcoin

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