President Trump’s tariffs have dominated stock market headlines all year and continue to do so. With his updated tariff letters in full force, investors are growing increasingly nervous about the upcoming June consumer price index (CPI) inflation report due tomorrow morning.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
“Certainly now that the president seems to be throwing a volley of new, higher tariff rates at a number of countries, we’re certainly not out of the woods yet on a tariff inflation threat,” said BMO Capital Markets chief U.S. economist Scott Anderson.
In June, economists expect inflation to rise by 0.3% month-over-month and 2.6% year-over-year. That’s up from May’s monthly and yearly rise of 0.1% and 2.4%, respectively.
Will the Economists be Wrong Again?
Core CPI excludes volatile items like food and energy from the CPI. Economists expect it to rise by 0.3% MoM and 2.9% YoY. May’s core CPI rose by 0.1% MoM and 2.8% YoY.
However, economists have overestimated inflation during the past four months. If inflation comes in below their estimates again, it would further support Trump’s belief that tariffs don’t contribute to rising prices.
Track the inflation rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
