Inflation due to tariffs is nonexistent

US consumer prices rise slightly; tariffs seen boosting inflation
www.reuters.com

... Summary

- - - Consumer price index increases 0.1% in May

- - - Foods prices rise 0.3%; but eggs a bit cheaper

- - - CPI advances 2.4% year-on-year

- - - Core CPI gains 0.1%; increases 2.8% year-on-year ...

U.S. consumer prices increased less than expected in May as cheaper gasoline partially offset higher housing costs, but inflation is expected to accelerate in the coming months on the back of the Trump administration's import tariffs.

The report from the Labor Department on Wednesday also showed underlying price pressures muted last month.

Economists say inflation has been slow to respond to President Donald Trump's sweeping tariffs as most retailers are selling merchandise accumulated before the import duties took effect.

Walmart (WMT.N) last month said it would start raising prices in late May and June. Inflation was also being curbed by slower price rises for rents and declining airline fares. The Federal Reserve is expected to keep interest rates unchanged next week, with financial markets growing more optimistic of a resumption in monetary policy easing in September.

"This report is another indicator that, before tariffs and economic uncertainty, we were well on our way to inflation falling back to target and that the main impediment to future progress is tariff-related price increases," said Daniel Hornung, a senior fellow at MIT. ...

I live in a "-------- blue city" suburb and eggs are on shelves but usually pretty depleted. Aldi had them this past weekend for $2.96 a dozen. The first time they've been

I live in a "-------- blue city" suburb and eggs are on shelves but usually pretty depleted. Aldi had them this past weekend for $2.96 a dozen. The first time they've been less than $3.00 in as long as I can remember.

www.bls.gov

The only reason the numbers look good is energy went down further on an extended trend. So much so, US output is being reduced.

Demand for gasoline isn't usually seen as a good thing, especially going into a traditionally high demand season.

As usual, s*&ts' analysis is terrible.

stupid less than symbol screwed up my post.

@#12 ... They can't, and won't, continue that forever. ...

For the present, major retailers seem to be selling the merchandise they stocked up on before the tariffs took hold, hence the spike in the trade deficit a couple three months ago, retailers imported a lot more than the usual amount of goods.

How long will that extra pre-tariff inventory last before the tariff-based goods start hitting the store shelves en mass?

My guess would be the late June, July time frame.

@#17 ... The only reason the numbers look good is energy went down ...

Hotels and airline fares also dropped, reflecting fewer tourists coming to the US.

"The only reason the numbers look good is energy went down further on an extended trend.
#17 | Posted by jpw"

The biggest part of Trump's plan to bring down prices was to lower the cost of energy. He did - and prices have come down.

Just admit you were wrong and stick to washing beakers -------. This economics stuff is beyond your abilities.

Do any of you -------- want to bet on the Q2 real GDP growth rate?

- and prices have come down.

Thanks, OPEC!

Do any of you -------- want to bet on the Q2 real GDP growth rate?

What's Grok telling you it will be?

"#24 | Posted by ClownShack"

You -------- were predicting a recession just a few weeks back - you still think it is going to be a negative reading or have you finally embraced reality?

"...want to bet on the Q2 real GDP growth rate?"

I'm more interested in the Q3 growth rate.

Q2 is still affected by inventories, companies which can only survive in the short term if they can't pass on the increases, and consumers pre-buying before tariffs come out in full force.

I predict if things go well it will be thanks to Trump, otherwise it's gonna be blamed on Biden and democrats.

Rinse repeat.

You -------- were predicting a recession just a few weeks back -

Don't worry your chubby cheeks, stupid, it's gonna hit America like a wrecking ball.

The rest of the world has proven they can continue without America.

The funniest part about all the inflation fear mongering by the Dems is that when it comes to actual inflation - you do live in a different world than the rest of us. Inflation is not even across the US - it is way, way worse on the West Coast and in the Northeast. For this latest report, inflation in LA was 3%, San Diego 3.4% and NYC 3.0%. This is versus the 1.4% for South and Mountain states. And this is as it should be - you keep voting for inflationary policies and inflation hits you harder. You got what you voted for so you should be happy.

"You -------- were predicting a recession just a few weeks back"

You-------were predicting an end to the war in Ukraine just a few weeks back.

No one wants economic pain, but the sorry fact of the matter is that Donald Trump is an incompetent who makes decisions based upon personal ego and emotions.

BAD THINGS have already happened economically (as anyone not a Liar knows) and the story where I live is that people are losing or in fear for their jobs.

Trump is going to have to use physical force for these people to keep quiet.

Which, of course, he is already practicing to do.

The biggest part of Trump's plan to bring down prices was to lower the cost of energy. He did - and prices have come down.

By "unleashing" US energy by DrIlL bABy DrIlLz!!! Meanwhile, under his watch, prices and production are dropping because of slumping demand. Not exactly what was promised...

Just admit you were wrong and stick to washing beakers -------. This economics stuff is beyond your abilities.

#21 | Posted by ScottS

Says the idiot who thinks slumping demand due to sliding economic conditions means he fulfilled his promise of lower energy prices.

You're either supremely stupid or intentionally dishonest. Only question is why you would be so intentionally dishonest...

slumping (gasoline) demand.

#32 | POSTED BY JPW

Sounds like....Sounds like..Wait for it.....

A really concrete sign of the Trump recession.

You're either supremely stupid or intentionally dishonest.

#32 | POSTED BY JPW

He's a frigging Liar.

"Meanwhile, under his watch, prices and production are dropping because of slumping demand. Not exactly what was promised...
#32 | Posted by jpw"

What demand is slumping -------? Gasoline? Nope. Natural Gas? Nope. It is on the production side -------.

energyathaas.wordpress.com

Oops. Try again, moron.

Another view ...

Consumer Price Index Summary
www.bls.gov

... CONSUMER PRICE INDEX - MAY 2025

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent on a seasonally adjusted basis in May, after rising 0.2 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.4 percent before seasonal adjustment.

The index for shelter rose 0.3 percent in May and was the primary factor in the all items monthly increase. The food index increased 0.3 percent as both of its major components, the index for food at home and the index for food away from home also rose 0.3 percent in May. In contrast, the energy index declined 1.0 percent in May as the gasoline index fell over the month.

The index for all items less food and energy rose 0.1 percent in May, following a 0.2-percent increase in April.

Indexes that increased over the month include medical care, motor vehicle insurance, household furnishings and operations, personal care, and education.

The indexes for airline fares, used cars and trucks, new vehicles, and apparel were among the major indexes that decreased in May.

The all items index rose 2.4 percent for the 12 months ending May, after rising 2.3 percent over the 12 months ending April. The all items less food and energy index rose 2.8 percent over the last 12 months.

The energy index decreased 3.5 percent for the 12 months ending May.

The food index increased 2.9 percent over the last year. ...