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U.S. consumer prices rose 0.3% in June, the steepest monthly gain since January, lifting annual CPI to 2.7% and core inflation to 2.9%. The biggest drivers were categories like furniture, electronics, and recreational goods – areas most exposed to recent tariffs targeting Chinese imports.

This report validates what many supply-chain managers had been warning: tariffs are no longer a distant policy risk; they’re now baked into sticker prices. For the Fed, it complicates the timeline for rate cuts. For companies importing consumer goods, it squeezes margins just as wage costs are stabilizing. The next few inflation prints will be pivotal; if pass-through persists into autumn, expect pressure on both consumer confidence and earnings forecasts.