Businesses can't and won't eat Trump's tariffs, so prices are going to go up.
Producer prices in July rose faster than forecast across the board, giving investors and the Federal Reserve an inflation surprise just over a week out from Fed Chair Jay Powell's crucial Jackson Hole speech.The Producer Price Index (PPI) for July showed inflation for businesses rose 0.9% over the prior month, well ahead of the 0.2% increase that was forecast, data from the Bureau of Labor Statistics showed Thursday. On an annual basis, prices rose 3.3%, the most since February.
"Core" producer prices, which exclude food, energy, and trade services, rose 0.6% last month, the most since March 2022 and an uptick after prices were unchanged in June. On an annual basis, core producer prices rose 3.3%, which was also the most since February.
. . . .
Thursday's data suggests, then, that companies will not absorb all costs incurred from tariffs but will pass some of these costs on to consumers in the form of higher prices.
Meanhwhile, noted Crackpot Trumpsimp Peter Navarro was on the news this morning insisting that foreign producers and exporters were paying tariffs, not US consumers or businesses. It's not a tax, it's a tax break!
What do words mean anyway?
— Molly Jong-Fast (@mollyjongfast.bsky.social) August 14, 2025 at 10:59 AM
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Who has credibility, an incompetent Trump lickspittle who is wrong all the time mouthing Trump's inane belief that China pays all the tariffs, or an entire profession highly capable non-partisan economists?
For Trump, time to fire more economists and hire more crackpots and fools.