The US consumer price index (CPI) data for June 2025 suggests that inflationary pressures remain elevated, with year-over-year and month-over-month readings both reflecting ongoing price increases.
According to the data released on Tuesday, the headline CPI rose 2.7% YoY, matching expectations and higher than the previous month’s 2.4%. The Core CPI YoY, which excludes volatile food and energy prices, came in at 2.9%, slightly below the forecast of 3.0% but higher than the previous 2.8%.
On a month-over-month basis, the headline CPI rose 0.3%, exceeding both expectations and the previous reading of 0.1%. Similarly, the Core CPI MoM rose 0.2%, below the 0.3% forecast but unchanged from the prior month.
These figures indicate that while annual inflation is aligning with forecasts, the month-to-month increases have picked up pace, hinting at persistent underlying inflation. The Federal Reserve’s 2% target remains elusive, especially with core inflation continuing to hover well above that level.
Markets and policymakers will be closely watching subsequent inflation prints to gauge the trajectory of price pressures and to assess the need for further monetary policy action.
