Inflation Rises at Fastest Pace in Six Years, Raising Concerns Over Consumer SpendingEconomists predict an escalating trade war will push prices up further, squeezing shoppers.

[Collection]American consumers could soon start feeling the pinch. Official data released Wednesday showed that U.S. inflation rose at its fastest pace since 2012, offsetting modest pay increases, and economists cautioned that this will likely continue an upward trajectory as the trade war between the U.S. and China shows no sign of abating. Consumer price inflation, which measures what Americans pay for a raft of items, increased at an annual pace of 2.9 percent in June on the back of higher oil and housing costs, according to the Labor Department. Core CPI inflation, which strips out volatile food and energy prices, ticked up from 2.2 percent to 2.3 percent in June. Paul Ashworth, chief North America economist at Capital Economics, is predicting that core inflation has further to rise thanks to new levies on Chinese imports as the U.S. seeks to punish China for unfair trade practices. “The tariffs on Chinese imports imposed at the start of this month, with the prospect of more to come, will only add to that upward pressure,” he said. Ashworth explained that while tariffs on a range of Chinese imports have yet to have any significant impact on the numbers, there are signs that it will change soon. Indeed, the cost of

Follow WWD on Twitter or become a fan on Facebook.

Read More...https://wwd.com/business-news/government-trade/inflation-rises-astest-pace-in-six-years-raising-concerns-over-consumer-spending-1202757606/