UK inflation unexpectedly rises to highest since January 2024

Key Movers

In June, U.S. consumer prices rose by 0.3%—the highest monthly increase in five months—largely due to tariff-driven cost increases in certain goods. Core CPI, which excludes food and energy, rose by 0.2% for the month and 2.9% year-over-year, indicating moderate underlying inflation. While tariffs are pushing some prices up, softer demand is keeping inflation in check for services like travel and accommodation. This mixed inflation picture suggests the Federal Reserve is likely to hold off on changing interest rates until at least September, as overall price pressures remain contained.

Yesterday, President Donald Trump expressed confidence that Republicans could gain five additional seats in the U.S. House of Representatives through redistricting in Texas, potentially strengthening the party’s slim majority ahead of the upcoming midterm elections. Currently, Republicans hold a 220-212 advantage in the 435-seat House, with three vacant seats in heavily Democratic areas. Although history shows that the president's party often loses seats during midterms, Trump suggested that redrawing district lines in Texas could help Republicans defy that trend and improve their electoral prospects.