The annual inflation rate in the United States has recently demonstrated a noticeable increase. Data released Tuesday by the Bureau of Labor Statistics revealed that prices in the U.S. rose 2.7 percent compared to the same period last year. This represents an increase from the 2.4 percent annual rise observed in May. Month-over-month, prices increased by 0.3 percent.
The core inflation rate, which excludes volatile energy and food prices, registered at 2.9 percent in June, a slight uptick from the 2.8 percent recorded in May.
While energy prices declined year-on-year, the decrease was considerably smaller at 0.8 percent, compared to a 3.5 percent drop the previous month. Food prices saw an increase of 3.0 percent over the past year, a marginal rise from the 2.9 percent increase recorded in May.
Market participants closely monitor U.S. inflation figures. A deceleration in inflation often signals a potential for the Federal Reserve to consider lowering benchmark interest rates. Elevated interest rates can negatively impact both the stock market and the real estate sector, as they make savings accounts and other fixed-income investments a more attractive alternative. Many analysts attribute rising prices, in part, to the trade policies enacted by the administration of President Donald Trump.