<h1>US Inflation Hits 2.6% in June, Core Prices Up 2.8% Above Fed Target, Impacted by Tariffs</h1> A key US inflation measure rose in June, with prices increasing 2.6% year-over-year, driven in part by tariffs on imported goods. Core prices, excluding food and energy, rose 2.8%, exceeding the Federal Reserve's 2% target. Monthly price increases included significant rises in furniture, appliances, and computer costs, while some service costs, such as airfares and hotel rooms, declined. The Federal Reserve maintained its key interest rate at 4.3%, citing uncertainty about whether tariff-related price increases are temporary or persistent. Consumer spending showed modest growth, rising 0.3% from May to June, but inflation-adjusted spending increased only 0.1%, indicating cautious consumer behavior. The economy expanded at a 3% annual rate in the second quarter, supported by reduced imports. The inflation data influenced the Fed's decision to hold rates steady despite political pressure to lower them.