US Edition
Inflation Data to Reveal Tariff Impact as Fed Weighs Next Rate Cut
UNITED STATES, AUG 12 – July's consumer prices rose 0.2% as tariffs on imports pushed inflation higher, with Goldman Sachs estimating consumers paid 22% of tariff costs through June.
- Tuesday's CPI report showed a 0.2% rise in July and a 2.7% year-over-year increase, according to the Bureau of Labor Statistics .
- Observers note a BLS spokesperson’s assurance that the CPI report would not be affected, despite the recent firing of BLS Commissioner Erika McEntarfer earlier this month, and tariffs on imports likely contributed to July's inflation increase.
- Breaking down the figures, core CPI rose 0.3% in July, the biggest gain since January, and increased 3.1% year-over-year after a 2.9% rise in June.
- According to the CME FedWatch Tool, markets are pricing in about a 90% probability of a Fed rate cut at the September meeting, with expectations of a 50 basis point reduction.
- Looking ahead, data collection suspension and staffing cuts threaten future inflation readings, with 72 CPI sample areas affected.
32 Articles
32 Articles
Inflation still elevated as report shows evidence of tariff-related price hikes
This week's inflation report showed core inflation remains stubbornly high. But the stock market rallied Tuesday on hopes the Federal Reserve will be able to cut interest rates in September.
The fall in gasoline prices helped keep overall inflation moderate in July; however, a wider range of products rose in price last month, showing that President Donald's extensive tariffs...
By Alicia Wallace, CNN Falling gasoline prices helped keep overall inflation subdued in July; however, a broader range of goods became more expensive last month, showing that President Donald Trump's sweeping tariffs are being passed on to consumers. Prices rose 0.2% in July, keeping the annual rate of inflation at 2.7%, according to the latest Consumer Price Index data released Tuesday by the Bureau of Labor Statistics. Stock futures rose after…
Consumer prices in the US rose moderately in July, in line with estimates, but inflation is likely to rise in the coming months, as tariffs announced by President Trump affect the cost of imported goods.
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