The headline is written to draw the contrast from what the professional economic pundits previously -and continuously- proclaim.
Two charts tell the story. The first is “Tariff Revenues”:
The Second Chart is USA Inflation:
Apparently, despite all the wailing, pearl-clutching and teeth gnashing from the multinationals, their economic punditry conscripts and the professional political apparatus, tariffs are not raising prices. Go figure.
The consumer price index (CPI) increased 0.1% for the month, putting the annual inflation rate at 2.4%. Excluding food and energy, core CPI came in respectively at 0.1% and 2.8%, compared with forecasts for 0.3% and 2.9%. [BLS DATA HERE]
(Via CNBC) Consumer prices rose less than expected in May as President Donald Trump’s tariffs had yet to show significant impact on inflation, the Bureau of Labor Statistics reported Wednesday.
The consumer price index, a broad-based measure of goods and services across the sprawling U.S. economy, increased 0.1% for the month, putting the annual inflation rate at 2.4%. Economists surveyed by Dow Jones had been looking for respective readings of 0.2% and 2.4%.
Excluding food and energy, the core CPI came in respectively at 0.1% and 2.8%, compared with forecasts for 0.3% and 2.9%. Federal Reserve officials consider core a better measure of long-term trends, with several expressing concerns recently over the impact that tariffs would have on inflation.
The all-items annual rate marked a 0.1 percentage point step up from April while core was the same.
[…] Energy slipped 1% on the month, while new and used vehicle prices posted respective declines of 0.3% and 0.5%. Within energy, gasoline posted a 2.6% drop that took the year-over-year decrease to 12%.
Food increased 0.3% as did shelter, which the BLS said was the “primary factor” in the otherwise modest CPI increase. Egg prices fell 2.7% but were still up 41.5% from a year ago. Apparel posted a 0.4% drop.
Though shelter prices rose on the month, the 3.9% annual increase is the lowest rate since late 2021.
With the modest inflation moves, real average hourly earnings increased 0.3% for the month and were up 1.4% from a year ago. (read more)
What drove inflation before was energy prices, the Green New Deal (globally Build Back Better).
That era is over with Trump in charge of MAGAnomics.
