US Consumers Get Early Taste of Tariff Price Hikes
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Tariffs, inflation, and Fed meddling
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Current tariff collections equate to 0.1% monthly inflation, aligning with recent CPI data. See why I’m skeptical that tariffs will lead to widespread inflation.
U.S. producer prices were unexpectedly unchanged in June as a tariff-driven increase in the cost of goods such as communication and related equipment was offset by softening demand for travel services.
US stocks end mixed after June inflation data and mixed earnings pressured the Dow and S&P 500. Nvidia powers Nasdaq to record high.
US wholesale inflation was muted in June, signaling that price pressures might not be building for producers and manufacturers.
The core inflation metric tracked by the Federal Reserve will likely come in at 2.7% or 2.8% for June, versus 2.7% in May, according to a batch of Wall Street estimates out today. That would mean no more progress toward the Fed's 2% target,
Critics of President Trump's tariff policies have been waiting for the import taxes to raise the inflation rate. That effect may be beginning.