Inflation Report Shows Stunning First Effects of Trump Tariffs on Prices
- The U.S. consumer price index increased by 0.1% in May 2025, raising the annual inflation rate to 2.4%.
- This rise followed concerns over tariffs announced in April 2025, with experts noting that most businesses had not fully passed costs onto consumers yet due to stockpiling and delayed effects.
- Some price increases appeared in durable goods like major appliances, which rose 4.3%, while sectors sensitive to tariffs, such as furniture and apparel, saw price declines in May.
- Joseph Brusuelas noted that the recent increase in appliance prices is similar to the surge experienced during the 2018-2020 import tariff period, while Luke Tilley contended that tariffs are more likely to weaken the economy rather than drive inflation.
- Federal Reserve officials remain cautious and expect price pressures to build later this year, with markets largely predicting no change in interest rates until September 2025.
19 Articles
19 Articles
Begich: China can’t compete when the playing field is level
Congressman Nick Begich took to social media on Friday with a several-part explanation about the effectiveness of tariffs, arguing that fears over tariff-driven inflation have not come to pass and that tariffs have instead led to reduced inflationary pressure and increased domestic investment. In an eight-part thread on X, Begich outlined what he sees as […] The post Begich: China can’t compete when the playing field is level appeared first on M…
U.S. data quality has been declining for years. Now Trump’s cutbacks are leading economists to question its figures
A key federal agency is increasingly publishing less accurate inflation data thanks in part to a hiring freeze issued by the Trump administration in January. The Bureau of Labor Statistics, which is part of the Labor Department, is increasingly relying on data collection methods that are less accurate than usual and has stopped tracking inflation figures in three U.S. cities. Decades of declining quality and accuracy in federal statistics, exace…
Trump tariffs show muted impact in US inflation so far
Despite warnings about US President Donald Trump's tariffs, tariffs have had a muted effect so far as inflation has remained lower than expected, but economists say that the situation may change in the coming months as tariffs persist and pre-tariffs inventories get depleted.
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