June inflation matches forecasts, driven by shelter costs

June inflation rose 0.3% month-over-month, bringing the annual rate to 2.7%, in line with economists’ expectations. Shelter costs—primarily rent—were the largest driver, alongside increases in medical care, car insurance, personal care, and education expenses. Meanwhile, prices for airfare, cars, and clothing fell, providing some relief. Core inflation, which excludes food and energy, showed signs of cooling. Economists continue to monitor the impact of President Trump’s tariffs, which so far have not triggered the runaway inflation seen under the Biden administration despite warnings from mainstream commentators. The Federal Reserve remains firm on interest rates, even after calls from Trump to cut them to ease financial pressures on American families. Mindy McIntosh, founder and CEO of McIntosh & Associates, joins Alicia Summers to discuss these developments, the ongoing rent squeeze, and the broader economic outlook.