US prices continued rise in July as Trump tariffs impact consumer costs | US economy
Since Donald Trump’s international tariffs began to affect the consumer costs of Shakeup, the US prices continued to rise in July, according to key economic data published on Tuesday.
According to the Consumer Price Index (CPI), prices were 2.7% higher than a year ago. Although inflation decreased in spring, the annual inflation rate has increased by 0.4% since April.
Although the inflation rate remains constant between June and July, the core inflation, which excludes variable energy and food industries, increased by 3.1% last month – a higher speed than seen in June.
The report shows that the US economy has experienced a little turbulence from the unique shaking of the US trade policy of Trump. insistence The economy of the Republican “firing into all cylinders”.
In all imports, Trump has above 10% universal tariffs, including the best trading partners of the USA, and have higher tariffs for dozens of countries. On Monday, hours before the deadline, Trump postponed 90 days more upright tariffs in China while the negotiations continued.
Although many of these tariffs are enacted only on August 7, Trump’s 10% universal tariff, steel and aluminum, such as high tariffs in certain industries, such as, have been in force since spring.
Economists say it takes time for tariffs to appear in consumer prices. Some retailers stock up their inventories to delay the effect of tariffs and keep prices constant. However, the jump in prices, as Walmart, Nike and Macy’s will be the leaders of companies, as it says that companies are starting to reduce costs to customers.
Tariffs also hit the labor market harder than economists expected. The data published at the beginning of this month significantly reviewed the business figures that initially show a healthy labor market. The government reported that 291,000 jobs were added to the economy in May and June, but the total revision reduced the total to 33,000.
The increase in prices and the shrinkage labor market threw the US federal reserve in a strict place. The Fed’s twin task is to maximize employment while keeping inflation under control.
Trump threw the Central Bank, arguing that he should reduce interest rates to encourage growth. However, the FED officials avoided a ratio adjustment by drawing attention to the uncertainty about the impact of Trump’s tariffs on prices.
Trump spent the last few months by directing the Economic authorities at the FED and now at the FED and now the Bureau of Statistics (BLS), which collects and reports economic data.
White House to cut The agency is the budget of BLS, which can affect the accuracy of its data on data collection and ultimately pricing and labor market.
Only a few hours after the work figures of July, the growth showed a stagnant month, the Trump Bls commissioner expelled Erika Mcentarfer. Trump, who did not show any evidence, claimed that the business figures were “republicans and fraudulent to make me look bad”. The movement worried some economists who said that the movement weakens the reliability of the institution.
