Inflation rose to a 4-month high in June as consumer prices began to reflect tariff policy. The Consumer Price Index increased from 2.4% in May to 2.7% in June year-over-year, according to the Bureau of Labor Statistics’ report. Despite the increase, core inflation came in softer than expected, suggesting full tariff impacts will likely push inflation even higher in the coming months. Meanwhile, housing inflation continued to show signs of cooling and matched the lowest level since November 2021. During the past twelve months, on a non-seasonally adjusted basis, the Consumer Price Index rose by 2.7% in June, the highest since February 2025. Excluding the volatile food and energy components, the “core” CPI increased by 2.9% over the past twelve months. A large portion of the “core” CPI is the housing shelter index, which increased 3.8% over the year, the lowest reading since November 2021.