Inflation rose last month to its highest level since February as President Donald Trump's sweeping tariffs push up the cost of a range of goods, including furniture, clothing, and large appliances. Consumer prices rose 2.7% in June from a year earlier, the Labor Department said Tuesday, up from an annual increase of 2.4% in May. On a monthly basis, prices climbed 0.3% from May to June, after rising just 0.1% the previous month. Worsening inflation poses a political challenge for Trump, who promised during last year’s presidential campaign to immediately lower costs only to engage in a whipsawed frenzy of tariffs that have left businesses and consumers worried. Trump has already declared that the U.S. effectively has no more inflation as he has attempted to pressure Federal Reserve Chair Jerome Powell into cutting short-term interest rates. Yet the bump in inflation last month makes it more likely that the central bank will keep rates unchanged at the central bank's next meeting in two weeks. Powell has said that he wants to see how the economy reacts to Trump’s duties before reducing borrowing costs. Excluding the volatile food and energy categories, core inflation increased 2.9% in June from a year earlier, up from 2.8% in May. On a monthly basis, it picked up 0.2% from May to June. Economists closely watch core prices because they typically provide a better sense of where inflation is headed. The uptick in inflation was driven by a range of higher prices. The cost of gasoline rose 1% just from May to June, while grocery prices increased 0.3%. Appliance prices jumped for the third straight month. Toys, clothes, audio equipment, shoes, and sporting goods all got more expensive, and are all heavily imported. Stock prices were mixed early, with the S&P 500 and Nasdaq indexes rising and the Dow Jones falling 154 points. Some investors were cheered by the fact that core prices rose less than forecast. Some items got cheaper last month, including new and used cars, hotel rooms, and air fares. Travel prices have generally declined in recent months as fewer international tourists visit the U.S. The report set up a broader political battle over Trump’s tariffs, a fight that will ultimately be determined by how the U.S. public feels about their cost of living and whether the president is making good on his 2024 promise that his agenda would help the middle class. The White House pushed back on claims that the report showed a negative impact from tariffs, since the cost of new cars were down despite the 25% tariffs on autos and 50% tariffs on steel and aluminum. The administration also noted that despite the June bump in apparel prices, clothing prices are still cheaper than they were three months ago.