Food and clothing prices rose more quickly while fuel fell only slightly, boosting the overall rate of inflation.

The rate has increased to its highest level since January 2024 as a result of food prices and fuel costs and is likely to affect Bank of England interest rates next month

Inflation ticked up to its highest level in months in June amid concerns about President Donald Trump ’s threats surrounding tariffs and his larger global trade war. At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The increase was largely fuelled by smaller-than-expected falls in fuel prices, a sharp rise in air fares, and continued growth in food costs.

Inflation rose last month to its highest level in four months as the cost of gas, food, and groceries rose, reversing several months of cooling price pressures.

U.S. consumer prices picked up in June, likely marking the start of a long-anticipated tariff-induced increase in inflation.

President Trump’s tariffs have yet to reverse the disinflation trend that’s persisted since January, baffling economists and the bearish views that color the consensus narrative.

Headwinds for mortgage rates arrived Tuesday in the form of rising inflation, which likely ends the faint hopes of a Fed rate cut in July.

A new report shows inflation has picked up and analysts believe the prices of many goods increased, in part, because of President Trump’s tariffs. It will play into decisions by the Federal Reserve about when and whether to cut interest rates and comes as the president and his team have ramped up their pressure campaign on Fed Chair Jerome Powell.