Americans felt a sting at the grocery store last month. 

Overall inflation hit 2.7 percent in June compared to a year earlier, the Labor Department said Tuesday. 

The latest figures show an increase of 0.3 percent from last month’s 2.4 percent rate. Core inflation, excluding the more unpredictable costs of food and energy, experienced a rise to 2.9 percent.

‘Today’s CPI report was mostly in-line with expectations,’ Bret Kenwell, a US Investment Analyst at eToro, told DailyMail.com. 

The concern, however, is that expectations had anticipated an increase in inflation, marking the highest year-over-year level since February.

Despite this, the markets have mostly ignored the rising prices. Dow Jones Futures experienced a slight decline, while Nasdaq and S&P futures saw a small increase.

But the consumer pricing uptick comes at a politically sensitive time for President Donald Trump, whose administration has clashed repeatedly with Federal Reserve Chair Jerome Powell over interest rates. 

Powell has warned that cutting rates too soon could fuel inflation — and with prices still rising, the case for a late-term rate cut just got tougher. 

Grocery prices saw another 0.3 percent increase last month

But President Trump wants bankers to lower interest rates to make financing easier for the government, consumers, and US businesses. 

Trump has railed against Powell in an attempt to pressure the banker into a new interest position. 

‘You have cost the USA a fortune and continued to do so,’ The President wrote to Powell in a handwritten note. ‘Hundreds of billions of dollars being lost! No inflation.’ 

Today’s consumer price increases also come as American consumers face new tariff shocks from mounting global tensions. 

President Trump campaigned on a promise to lower prices for everyday Americans, but his administration has imposed tariffs of at least 10 percent on a wide range of imports as part of an ongoing trade dispute. 

Experts have warned DailyMail.com for months that the President’s signature economic policy could push prices higher. Up to this point, those fears haven’t made their way into the consumer economy.  

For months, the Trump administration touted pricing decreases in several visible segments: egg and gasoline prices have tamped down after huge increases after his inauguration. 

Plus, the jobs market has remained resilient.  

President Trump and Jerome Powell, the chair of the Federal Reserve, have opposing views of interest rate increases

Consumers might have noticed an increase in prices last month – experts warn it might be the start of tariff-related spikes 

But economic strategists warned today that the economic bubble might start to pop underneath the weight of the President’s on-and-off tariffs. 

‘While inflation has remained relatively tame in the face of chaotic global trade policy, investors may start to heed the Fed’s concerns about a tariff-fueled rise in inflation, reigniting a concern many were hoping wouldn’t come to fruition,’ Kenwell added. 

Kenwell said investors largely expected higher prices in today’s reading. He doesn’t believe that markets will dive because of the report. 

But he said Wall Street is starting to ‘ask whether today’s reading is just a one-off blip or the start of something bigger.’ 

For shoppers, today’s data helps explain why their income doesn’t seem to stretch as far as it used to.  

Energy prices rose 0.9 percent in the past month as warring tensions in the Middle East peaked. 

Food prices were also amont the hardest hit last month, with food prices rising another 0.3 percent, matching May’s grocery increase. 

Coffee drinkers had saw the largest yearly increase. Prices for a cup of joe jumped 2.2 percent.