WASHINGTON (AP) – American inflation did not change last month, while a measure of basic inflation rose to its highest level in five months, as the customs tariff raised the cost of some imported goods while gas and the barbaric prices were cooled.
The Ministry of Labor said on Tuesday that consumer prices increased by 2.7 % in July from one year, as is the case in the previous month and an increase of the lowest level in the after -guarding by 2.3 % in April. With the exception of the flying food and energy categories, the basic prices increased by 3.1 %, an increase of 2.9 % in June.
Numbers indicate that the slowdown in cost growth of the cheapest rents and gas compensates for some of the effective definitions of President Donald Trump. Tuesday numbers are likely to reflect the 10 % global tariff imposed by Trump in April, in addition to higher duties on countries like China and Canada.
However, stubborn high inflation places the federal reserve in a difficult place: employment Slowly In the spring, after Trump announced the definitions in April. The position of job gains reinforced the financial market expectations to reduce the interest rate by the central bank.
However, the Federal Reserve Chair, Jerome Powell to caution An enlarged inflation can increase on the margin – the position that angered Trump, which challenged the traditional standards of the independence of the central bank and demanded low borrowing costs.
On Tuesday’s data, a very charged moment of the Ministry of Labor’s Labor Statistics Office, which collects and publishes inflation data. Trump Erika Minarker launchedThen, the BLS president, after the job report on August 1, also showed a sharp decrease in May and June, which was previously reported.
The President posted on social media on Monday that he chose EJ AntoniEconomic expert at the Conservative Heritage Foundation and repeated critic for job reporting, to replace Mcentarfer.
“EJ will ensure that the issued numbers are honest and accurate,” Trump said.
In addition to the BLS disorder is the freezing of a government level, which forced it to reduce the amount of data it collects for each inflation report, The agency said. UBS Economic Economy Economy estimates that BLS now collects about 18 % of price quotes to report inflation than it was a few months ago. He believes that the report will lead to more volatile results, although its average over time, is still reliable.
On a monthly basis, prices are expected to increase modestly, increasing by only 0.2 % from June to July and basic prices rose 0.3 %. Gas prices are likely to decline in July, and the grocery costs are expected to increase, and to generalize inflation in general.
The signs of duties that paid prices for the first time appeared in Inflation report in June It was released last month. Game prices jumped by 1.8 % from May to June, after an increase of 1.3 % in the previous month. The prices of clothes increased by 0.4 % in June, while sports goods jumped by 1.8 %.
Meanwhile, the average tariff level increased from about 2 % before Trump’s inauguration increased to approximately 18 %, the highest level since the early thirties, according to the budget laboratory at Yale University. Most imports from the European Union and Japan are now facing 15 % duties, while goods from Taiwan pay 20 % and Switzerland, 39 %.
Other trends help keep inflation from height more quickly. Price increases for apartment rents, for example, are steadily cooled after sharp screws during the era of the epidemic. The prices of new cars have decreased slightly in recent months, even after Trump slapped 25 % of car duties and auto parts.
Until now, we pay auto and abroad drivers, although economists say they are likely to move to consumers soon. Car companies also pay 50 % import taxes on steel, aluminum and 30 % on spare parts from China.
Ford He said She paid $ 800 million in customs tariffs in the second quarter, while General Motors He holds $ 1.1 billion. StelantisThe fourth largest car company in the world and brand makers such as Chryler, Dodge and Jeep, said it paid $ 350 million in customs tariffs at a cost of $ 1.7 billion expected this year.
Consumers are likely to accommodate more costs outside the automobile industry in the coming months, as Trump began to finish the touches on many definitions. Economists say that once you know what they will pay, they are more likely to pass these costs for consumers.
Trump insisted that manufacturers abroad will pay tariffs by reducing their prices to compensate for duties. However, import prices have not decreased before the conflict since the fees were placed.
Economists in Goldman Sachs estimate that foreign manufacturers have absorbed only 14 % of duties until June, while 22 % were paid by consumers and 64 % by American companies. Based on previous patterns – such as Trump’s 2018 duties on washing machines – economists expect that by this fall, consumers will bear 67 % of the burden, while foreign exporters pay 25 % and American companies deal with only 8 %.
Many large companies are still raising prices in response to tariffs, including clothing makers Ralph Lauren and Under the shieldAnd glasses company Warby Parker.
The consumer products giant, Procter & Gamble, Crest, CRAST, and carrot detergent, Charmin, Charmin, Charmin, Charmin, Late last month It will raise prices on about a quarter of its products in percentage of the average number.
Elf Beauty, a cosmetic maker, which makes the majority of its products in China, said on Wednesday that it raised prices by a dollar on the collection of its products completely from August 1 due to the costs of customs tariffs, which is the high prices in its history of 21 years.
“We tend to drive and then we will see the number of follow -up types for us,” CEO Tarang Amin said on Wednesday’s call.
Matt Pavic, chief director of strategy and innovation in Revionics, a company that provides tools of artificial intelligence for adult retailers to help them assess pricing decisions, says many companies selectively raise prices to compensate for tariffs, not in all fields.
“So far, we haven’t seen a great success for consumers in retail prices,” Pavic said. “Now, they are rising, we have seen it.”
Correction, August 14, 2025: A previous version of this article erred in abuse to the functional name Matt Pavic.
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