Inflation held steady despite tariffs

WASHINGTON (NEXSTAR) – New economic numbers show inflation stayed steady last month, but economists say Americans should be bracing for the full impact of President Trump’s tariffs.

New inflation numbers are lower than top economists predicted, with U.S. consumer prices up 2.7% last month.

“Today’s CPI report revealed that inflation beat market expectations once again and inflation remains stable,” said White House Press Secretary Karoline Leavitt.

The White House sees the new data from the Bureau of Labor Statistics as a good economic sign but Thomas Aiello with the National Taxpayers’ Union says there’s reason to be wary.

“It’s better than expected but in my opinion it’s still a little hot. Anytime we’re at that 2% inflation number we’re in the wrong spot,” said Aiello.

Many of President Trump’s new tariffs just took effect last week with most foreign trading partners facing between 15-25% tariffs on their goods.

“The full tariff picture remains to be seen,” said Aiello.

Aiello says so far it appears U.S. businesses are absorbing some of the tariff costs but predicts in the months ahead there will be an impact for shoppers too.

“We think a lot of it as this point is being eaten by businesses, and it just is a matter of when they start to pass those higher prices along to consumers,” he added.

The White House argues President Trump’s tariffs are the key to restoring wealth and Treasury Department data shows tariffs are bringing in revenue with the U.S. earning more than $29 billion from tariffs last month.

 Aiello’s outlook on the economy is more mixed but he expects next month the Federal Reserve may have good news for consumers.

“Everyone expects a rate cut, an interest rate cut in September, I think that’s still the most likely scenario,” said Aiello.