In Reply to: An indication Inflation is going higher. posted by Bruinfan4ever on June 12, 2025 at 06:57:09
NYT: First, the good news: Economists had been bracing for Wednesday’s Consumer Price Index report to show the first clear signs of the trade war driving up prices.
Yet “core” inflation steadied at 2.8 percent year-on-year — the fourth consecutive month in which this closely watched metric came in below analysts’ expectations, according to Deutsche Bank. That prompted Trump to urge the Fed to cut interest rates by a full percentage point. (The futures market on Thursday was penciling in about half that by year-end.)
But signs of turbulence are emerging. While core goods inflation was a tick lower year-on-year, several categories — including toys and major appliances — saw big jumps in price.
The prices of new and used vehicles and apparel actually fell year-on-year, defying expectations. But economists believe that benign reading was a result of companies stocking up inventories to beat the tariffs hit. And, they believe consumers may be pulling back, keeping a lid on inflation.