US Inflation Holds Steady in July Despite Tariffs, Markets Rise, BLS Commissioner Nominated
US inflation remained stable in July, largely due to falling gasoline prices, despite President Trump's tariffs. This stability boosted market optimism, as attention shifts to the new Bureau of Labor Statistics commissioner nomination.
Inflation held steady in July as tariffs threaten wider impact
Chicago Sun-Times
US inflation held steady as mild tariff hit offset by cheaper gas, food
New York Daily News
Inflation held at 2.7% in July, allaying tariff fears
Washington Examiner
Overview
- US inflation remained stable in July, defying earlier concerns about significant impacts from President Trump's tariffs, indicating a resilient economic environment.
- A crucial factor in tempering overall inflation was a 9.5% drop in gasoline prices during July, significantly contributing to consumer price stability nationwide.
- President Trump's tariffs have elevated the average U.S. tariff rate to 18-20% since his inauguration, reaching the highest level recorded since the early 1930s.
- Stock futures, including S&P 500 and Nasdaq 100, rose following the release of consumer prices data, reflecting increased market optimism regarding the current economic outlook.
- Markets are closely monitoring President Trump's nomination of E.J. Antoni as the new Bureau of Labor Statistics commissioner, a key appointment after Erika McEntarfer's recent firing.
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Analysis
Center-leaning sources collectively frame the inflation data by emphasizing President Trump's tariffs as a significant, if not primary, upward pressure on prices. They highlight the direct link between tariffs and rising costs, even when acknowledging other mitigating factors, and often project a future where tariffs will increasingly impact consumer prices.
"The numbers were much higher than economists had expected."
Associated Press"Inflation was unchanged in July as rising prices for some imported goods were balanced by falling gas and grocery prices, leaving overall prices modestly higher than a year ago."
Chicago Sun-Times"The report showed price jumps for the one month from June to July for typically imported items such as tomatoes, which rose 3.3%, and coffee, up 2.3%."
BBC News"However, core inflation data — which excludes volatile food and energy costs — rose to 3.1%, the highest in five months, reflecting that Trump’s tariffs had pushed some businesses to start raising prices."
Semafor"Consumer products giant Procter & Gamble, maker of Crest toothpaste, Tide detergent and Charmin toilet paper, said late last month that it would lift prices on about a quarter of its products by mid-single-digit percentages."
Fortune"The Consumer Price Index in July rose 2.7% on an annual basis, slightly cooler than economists had forecast."
CBS News"Consumers will likely continue paying more"
NPR"Inflation has been pulled by conflicting forces this year."
USA TODAY"U.S. stock futures are mixed as investors await a key inflation report due before the opening bell."
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FAQ
US inflation remained stable in July primarily due to a significant 9.5% drop in gasoline prices, which helped offset the inflationary impact of tariffs introduced by President Trump.
Gasoline prices fell by 9.5% year over year and 2.2% over the month of July, which was a crucial factor in keeping the overall inflation rate steady.
The nomination of E.J. Antoni as the new Bureau of Labor Statistics commissioner is significant because it comes after the recent firing of Erika McEntarfer, and the role is key for overseeing labor statistics including inflation data.
Since President Trump's inauguration, the average U.S. tariff rate has increased to 18-20%, the highest level recorded since the early 1930s.
Following the release of the July consumer prices data, stock futures such as the S&P 500 and Nasdaq 100 rose, reflecting increased market optimism about the economic outlook.
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