US core inflation rises slower than expected for fifth straight month

Core inflation in the US grew less than forecast in June, marking the fifth consecutive month of slower-than-expected growth despite the impact of President Donald Trump’s import tariffs, which pushed up prices on certain goods. The core consumer price index (CPI), which excludes volatile food and energy costs, rose just 0.2% month-over-month, below expectations once again.

While falling car prices helped restrain the index, tariffs contributed to sharper price increases for goods like toys and household appliances, which saw their fastest inflation rates in years.

The mixed data has divided Federal Reserve officials. Some see evidence of tariff-driven price pressures, while others note limited broader inflationary risks. Markets still expect the central bank to hold interest rates steady at its upcoming meeting.

Following the report, the dollar strengthened, and Treasury yields rose, according to Bloomberg.