U.S. inflation data released in 2025 shows that tariffs are increasingly raising the cost of goods, clothing and auto parts. Prices of apparel, audio products, groceries, new cars, furniture and hardware all grew by anywhere between 0.3%-0.8%. Coffee prices rose 3.6% from the month as is up 20.9% from a year ago. These prices may not seem to sound dramatic but they are enough to give both consumers and federal reserve policymakers at least some cause for concern. These tariff price pressures are hurting consumers at a time where the labor market is already showing signs of concern.
Economists believe that these tariffs are hitting the middle class the hardest for their basic necessities like gas, food, clothing and housing as their continues to be a rise in cost. Trump stated that he believes the tariffs wouldn't drive inflation higher. Over the next couple of weeks, central bank officials are set two meet whether to lower their key overnight fund rate, currently around 4.3%. While the tariff driven price increase in these goods are very concerning they could just be temporary. Along with that, the federal reserve cutting rates might provide short-term relief to borrowers and keep growth moving.
https://www.cnbc.com/2025/09/11/trumps-tariffs-are-slowly-finding-their-way-into-consumer-prices.html
5 comments:
If the Fed cuts rates in this coming meeting, and then continues to cut would this not push inflation even higher, and continue to pressure consumer's on their spending habits?
These increases in consumer goods are no good at all. These necessities continuing to increase in price are going to be even more frustrating when I graduate.
With the prices on tariffs being new. I believe that it is a possibility that consumer goods prices could be increasing right now. However, it could just be a short-term pain and moving forward in the long-run they may fall back down.
As a young consumer the rise in goods like these are concerning. Inflation seems to be growing out of control and makes me think we might be closer to a recession day by day.
As a consumer, I do not like to see the administration taking actions that will negatively affect me and people like me. It seems misleading to state that foreign countries will be footing the bill for tariffs, meanwhile companies are being forced to pay them and are pawning off the costs to us consumers.
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