Tariffs might be starting to show in America’s inflation rate — but where are prices rising the most?
Coffee. Content. Child care. What’s up (and down) as US inflation hits 2.7%?
According to new data from the Bureau of Labor Statistics, consumer prices rose 2.7% year over year in June — slightly above forecast and the fastest pace since February — with some suggesting that President Trump’s sweeping tariffs may finally be filtering through to nudge up prices on a range of goods.
But beyond the monthly ups and downs, where has inflation hit hardest — and where have prices actually fallen — in the last 12 months?
The bad news: Food at home is up 2.4% from last year, the fastest rate in nearly two years. Among the biggest contributors are eggs (up 27%) amid avian flu disruptions, while your morning coffee (up 13.4%) and evening steak (up 10.6%) have also gotten pricier on the back of squeezed supply and tariff jitters.
Electricity bills (up 5.8%) are another sore spot, partly due to AI-hungry data center demand straining outdated infrastructure. Elsewhere, in another sign that tariffs might be taking hold, import-heavy categories like kitchen and living room furniture (up 5.1%) are climbing fast.
The slightly-less-bad news: The cost of dining out is up 3.8% — still high, but easing from last month. Housing costs rose by the same amount, though that’s the slowest rate since November 2021. And tariff-sensitive categories like apparel and toys remain relatively flat from last year… for now.
The good news: While repairing a car has gotten pricier, fueling one hasn’t, with gasoline prices down 8.3% thanks to surging global oil supply. Meanwhile, it could be a good time to get globe-trotting: airfares are down 3.5% from June 2024 and hotel stays have fallen 3.7%, too.
For homebodies, maybe now’s the opportunity to invest in your favorite pastimes? TVs are 10.1% less expensive than they were — though what that means in reality, as we’ve discussed, is likely a little different — while sewing machines and supplies for the craftier-minded have plunged 17.4%. However, that may not last once new tariffs set in.
