US EditionInflation Report Shows Stunning First Effects of Trump Tariffs on Prices
- In May 2025, the broad consumer price index rose 0.1%, bringing the annual U.S. inflation rate to 2.4%.
- This modest increase followed fears that President Donald Trump's tariffs would raise inflation, but traditional data shows limited immediate effect.
- Furniture, clothing, and car prices declined in May, while some imported goods like canned fruits and appliances saw price increases due to pre-tariff stockpiling.
- Senior economist Aichi Amemiya said the limited impact reflects stockpiling and a lagged pass-through, and the Federal Reserve reported expectations of faster price rises ahead.
- Economists expect tariff-driven price pressures to materialize later this year, potentially pushing inflation higher and influencing Federal Reserve rate decisions.
16 Articles
16 Articles
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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