zimmytws
No signs yet of tariffs getting passed through to consumers, neither in durable goods nor in clothing and footwear.
A lot of durable goods sold to consumers are imported or contain imported components or materials subject to the
Tariff-Inflation Watch: CPI Inflation In Light Of The Tariffs
Summary
- A lot of durable goods sold to consumers are imported or contain imported components or materials subject to the new tariffs.
- In terms of the year-over-year percentage change, the CPI for durable goods was unchanged, after a long series of ever smaller negative readings back toward the 0% line.
- “Core services” CPI rose by 0.17% month-to-month (+2.1% annualized) in May, from April, a deceleration from the prior month (blue line in the chart below). Services are not tariffed.
Wolf Richter is the analyst at, and the publisher of, WOLF STREET, where he discusses business, finance, and money. Core focus: Federal Reserve, credits, equities, residential and commercial real estate, the auto industry, trade, consumers, and energy. He started this operation in 2011. Prior to that, he worked for 20 years in C-level positions, including 10 years in the auto industry. MBA from the University of Texas at Austin.