U.S. inflation picked up in June, with headline CPI rising 2.7% year-over-year, according to data from the Department of Labor. The figure surpassed market expectations of 2.6% and marked an increase from May’s 2.4%. On a monthly basis, inflation climbed 0.3%, in line with forecasts and up from May’s 0.1%. Core CPI, which strips out food and energy, rose 2.9% annually and 0.2% monthly, both slightly below expectations of 3.0% and 0.3%. Price gains in household furnishings, healthcare, recreation, apparel, and personal care were offset in part by declines in new vehicle prices and airfares.

On the trade front, President Trump announced plans to impose general tariffs of over 10% on smaller countries in Africa and the Caribbean. Commerce Secretary Howard Lutnick commented that these nations contribute minimally to U.S. trade and hold little weight in the administration’s broader strategy to reduce the trade deficit. Separately, tariffs on Indonesia were lowered from 32% to 19% following a trade agreement in which Indonesia pledged to buy $15 billion in U.S. energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft. However, the timeline and finer details of the deal remain unclear. Trump also warned of strict penalties on goods rerouted to bypass tariff restrictions.

Take a look at today's market analysis for more insights.