#Inflation rose in July as #Trump’s #tariffs intensified price pressures.
The #Consumer Price Index [#CPI] stayed steady at 2.7% compared to last year. On a monthly basis, prices rose 0.2% from June. But an important gauge tracking underlying inflation accelerated more rapidly.
“Core” CPI, which strips out volatile food & energy prices, jumped 0.3% over the course of the month, or 3.1% on a year-over-year basis. That is the fastest annual pace in 5 months.
#economy
https://www.nytimes.com/live/2025/08/12/business/cpi-inflation-tariffs-fed?smid=nytcore-ios-share&referringSource=articleShare
The July data, which was released by #BLS, provides a clear sign that businesses are more readily passing along #tariff-related #costs to the #consumer after a prolonged period in which price gains were muted.
US companies that import products have largely been able to hold off on raising prices despite a universal 10% tariff that has been in place on all imports since April, along with higher levies on steel, aluminum & products from China & Canada.
#economy #CPI #inflation #tariffs #Trump
#Trump’s more punishing #tariffs on individual countries went into effect on Aug. 7 so will not be reflected in the July data.
Businesses have managed to avoid passing along price increases because of a strategy earlier in the year to stockpile goods that were likely to be subject to Trump’s levies. Many companies have also sought to absorb the #costs themselves in order to avoid driving away customers, some of whom are increasingly under financial strain.
#economy #CPI #inflation
But July data showed more businesses reaching a tipping point, left with little option but to raise #prices following June’s notable uptick. The biggest impact has been concentrated in categories such as furniture, appliances & other household wares, as well as recreation goods & footwear.
Car price increases have stayed relatively subdued as carmakers have shielded their customers from #Trump’s #tariffs rather than forcing them to bear the brunt of the higher #costs.
#economy #CPI #inflation
…Americans have become choosier about how they spend, depressing airline fares, hotel fees & other services-related costs. Hiring has slowed in recent months, keeping a lid on wage gains. July’s #jobs report showed just 73k jobs added for the month, & gains registered in May & June were revised down by 258k positions. Companies have yet to lay off workers in droves, but economists worry they will be forced to cut back on #costs as #tariffs continue to eat into their margins.
#economy #Trump
Tuesday’s data will be important for the #FederalReserve, which is facing a challenging economic situation as #prices are rising while the #labor market is weakening. It is a difficult backdrop given the Fed’s duty to keep #inflation low & stable while ensuring that #unemployment does not rise too much. Officials at the central bank have kept #InterestRates steady since the start of the year as they have sought more clarity on how #Trump’s policies, including #tariffs, would impact the #economy.
@Nonilex@masto.ai recession is here. It's just not evenly distributed yet.
Nonilex