Inflation, Consumer Price Index and June
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A whiff of tariff inflation showed up in economic data this week, providing the first clues of how tariff policy might impact prices and the economy.
US stocks end mixed after June inflation data and mixed earnings pressured the Dow and S&P 500. Nvidia powers Nasdaq to record high.
The Indian rupee is expected to hold near the key 86-per-dollar level on Tuesday, with traders awaiting U.S. inflation data that could influence expectations around Federal Reserve rate cuts.
A fresh report on Tuesday marked two consecutive months of rising inflation. Consumer prices rose 2.7% in June compared to a year ago, marking a notable surge of price increases as President Donald Trump's tariff policy took hold and some retailers warned they may pass some of the tax burden onto shoppers.
Monetary policymakers have held off on lower interest rates for months, citing the risk of tariff-induced inflation. Several now say this week's CPI and PPI reports confirmed their suspicions.
President Donald Trump swept into office in January with a promise to tackle what he called the "inflation crisis" that had kicked off under his predecessor.
Gold prices rose on Tuesday with global trade tensions supporting demand for safe-haven assets, and investors awaiting U.S. inflation data due later in the day that could give clues on the Federal Reserve's interest rate path.
Treasury Secretary Scott Bessent, in an interview on Bloomberg Television, said he hasn't looked at the CPI number that's about to be released -- he is entitled to early access --but said not to read too much into one month's number.
Wholesale inflation remained unchanged in June, according to new Producer Price Index data. Meanwhile, "crypto week" in Washington has hit a snag as Republican lawmakers side with Democrats on cryptocurrency legislation.