Inflation picked up in June to 2.7 percent, according to the Consumer Price Index report released Tuesday by the Bureau of Labor Statistics. This is an increase over May’s annualized inflation rate of 2.4 percent, but still below the inflation rate of 3 percent in January of this year when Donald Trump took office as president. Core inflation, excluding food and energy, increased to 2.9 percent.

Fears that tariffs would significantly raise inflation rates have not yet materialized, although some of June’s increase may be attributable to them. Higher inflation also makes it less likely that the Federal Reserve will decide to lower interest rates, which Trump has argued should be cut to 1 percent. Federal Reserve Chairman Jerome Powell has expressed a lack of interest in accepting the suggestion, stoking speculation that the president may try to replace him with a new appointee more amenable to lowering rates.