Core U.S. Inflation hit five-month high, pressuring discretionary spending
by National Marine Manufacturers Association 16 Aug 09:37 AEST
Consumer Price Index © National Marine Manufacturers Association
U.S. inflation picked up in July, with the Consumer Price Index rising to 2.7% year-over-year, according to the latest Bureau of Labor Statistics data. Core inflation, which strips out volatile food and energy prices, climbed 3.1%, increasing at the fastest annual pace in five months after one of the largest monthly jumps this year.
On a month-to-month basis, overall inflation rose 0.2%, while core prices increased 0.3%, up from 0.2% in June. Notably, recreation-related prices, a category that includes some boating expenses—rose 0.4% from June to July.
The latest figures offer early evidence that tariffs are beginning to influence business costs and consumer prices. Following a period of relative price stability, some companies are now passing trade-related expenses on to buyers. Earlier strategies, such as absorbing costs or stockpiling imported goods ahead of tariff implementation, helped delay price hikes, but those measures may be reaching their limits.
Read the full article here...