US CPI Rises: Inflation Accelerates Modestly in June, Fed Patience Likely

Released today, the U. S. Consumer Price Index (CPI) for June 2025 showed a modest acceleration in inflation, with headline CPI rising by 0. 3% month-over-month, same with market projections, and reaching 2. 7% year-over-year. Since February, this yearly rate is the greatest and represents the second straight month of increase. Core CPI, which excludes volatile food and energy categories, also increased by 0. 2% month-over-month, bringing the annual rate to 2. 9%—in line with expert expectations.

Among the main causes of these price increases were a 0. 2% increase in shelter prices, which continue to be the main contributor to monthly inflation, and a 0. 9% increase in energy prices, with gasoline specifically up by 1. 0%. Food prices rose 0. 3% per month and 3. 0% yearly as well, with contributions from both the restaurant and grocery industries. June also saw reductions in categories like used automobiles, new cars, and airline tickets.

The general market response suggests that the data matches expectations, therefore inflation is firming but not soaring and underlying pressures remain constrained notwithstanding recent tariff-related hikes. Economists relate the rise to short-term variables like energy and shelter, hence confirming the viewpoint that core inflation is still "tame," which might let the Federal Reserve keep a cautious attitude on future rate changes.