Republicans say the price report is a blessing. Democrats say a bust. Who is the correct? | Business and Economics News

Does the US consumer price index (CPI) report that Americans pay more or less for goods? Mixed messages may be seen based on the politicians you listen to or what they show social media algorithms.

Some say the numbers show the success of President Donald Trump. Others say the opposite.

Each month, the Federal Office for Labor Statistics publishes the consumer price index, which measures price changes for goods and services, including food, clothes, gasoline and housing. The report is used to assess economic stability and report policy decisions.

Republican Senator Rick Scott of Florida celebrated the July report on his chest.

“Another month of inflation comes in the lighter than expected. This is great news for the Florida families, and another reminder of the confidence in PRES. Trump!” Scott was posted on August 12 on X, along with the short Fox business clip about low energy and gas price.

American actress Cathy Castor, a democracy of Florida, had taken a different difference.

“Trump raises your grocery bill to line up the wallets of his billionaire friends.

Economists have told that this disorganized framework is not a new matter, and people from different political tribes use different standards to enhance their views. They said that the full image of the economy’s health and its path needs more time to enter the focus.

In general, the report numbers are an “another dose of bad news,” said Douglas Holtz Ickin, head of the American Labor Policy Forum on the right of the center. “It’s not yet exciting, it’s not a crisis, but it is not positive.”

Trump’s tariff, which was widely seen to see how consumer prices and inflation are still new and some I just entered into force In August.

“Since 2021, at least, CPI reports have become a party battlefield where both sides choose cherries to better support their argument,” said Jasson Foreman, a professor at John F. Kennedy State College at Harvard University who previously worked as an economic advisor to former President Barack Obama. “There is a lot of data in the consumer price index report that there is always a way to cut it and support it to support any view.”

Consumer price index report and its meaning

For the month of July, CPI It increased 0.2 percent compared to the previous month and 2.7 percent over last year. This is a little cooler than the 2.8 percent economy expectations, thanks to the decreases in gasoline and energy prices.

Gary Bertlis, an older colleague at the Brookings Institute, said that the 2.7 percent increase for 12 months in consumer prices for all elements was “slightly lower than it was in the beginning of 2025”, in favor of Trump. But the number is a little higher than it was from March to July, he said, an advantage of criticizing Trump.

Basic inflation – which excludes food and energy because it is considered volatile measures vulnerable to large and rapid fluctuations – requires 0.3 percent for July and 3.1 percent from last year. This is the first time that the annual basic inflation has increased, which officials use to monitor the underlying inflation trends in the long run, above 3 percent in several months. These expectations surpassed the Federal Reserve before the 2024 elections, which expected 2.2 percent of the basic inflation for 2025.

“Economists tend to focus on the nucleus because it is less wrong than food and energy prices,” said Dean Baker, founder of the liberal center for economy and policy research. “Food and energy prices are very important, but the big changes in either directions tend to reflect. Therefore, it is often more useful if we are looking for future trends to consider the basic indicator.”

Despite the rise, the report was moderate enough for investors, as American stocks were closed near a record level on August 12. The stock market, at the present time, appears to focus on the possibility of federal reserves to reduce interest rates in September, given concerns about the refrigeration labor market. Central Bank officials have retained Trump’s rejection of fixed prices in 2025 while they were waiting to see the effects of the tariff on the economy.

July data is among a work statistics office. After the Agency’s descending review of employment data in May and June, Trump Firing Office Commissioner Erika MissinarfarAccusing her of political bias. Trump nominated EJ AntoniEconomist at the Conservative Heritage Foundation, who criticized the office, as the agency New Commissioner.

The long road and zigzag from Trump’s tariff

While the Trump administration highlights the collection of approximately $ 130 billion from New tariff So far, many economists expect companies to start transferring additional costs to American customers.

The estimated analysis of Goldman Sachs in a joint analysis with Bloomberg is that American companies have so far absorbed the bulk of customs tariff costs-about two-thirds of the fees-while consumers absorbed about 22 percent of the costs until June.

But Goldman Sachs said that he expected the consumer share of costs to 67 percent by October if the customs tariff followed the previous patterns of how the price fees impact.

Trump wrote a social position on August 12, David Solomon, CEO of Goldman Sachs, must place its economic specialist. “It has been proven that even at this late stage, the definitions did not cause inflation, or any other problems for America, unlike the huge amounts of cash flow in our cabinet cabinets,” Trump wrote.

Some American companies have avoided passing higher prices by storing goods before implementing the tariffs. Others absorbed the costs to avoid the loss of customers or stick to this Courts Nix definitions.

“This is just companies that make business decisions,” said Holtz Eco of the American Labor Forum. “But there will be a point if the definitions remain in place at the current levels, as it will not be possible anymore.”

Several studies on previous definitions have found that they harm the economy and increase consumer prices.

At the present time, the experts agreed that American economy In the moment of waiting and seeing.

BRRTLESS, from Brookings, believes that the effects of definitions on consumer prices are modest so far, and that the increase in prices across different categories of goods and services “does not correspond to the idea that the definitions are the main driver of general inflation.”

He said: “This may be the case in the future, but not yet.”

Holtz-eakin also warned against putting a lot of shares in one report.

“Do not believe one -month data,” he said. “This is a rule of life if you are doing policy.”