The headline is written to draw the contrast from what the professional economic pundits previously -and continuously- proclaim.
Two charts tell the story. The first is “Tariff Revenues”:
The Second Chart is USA Inflation:
Apparently, despite all the wailing, pearl-clutching and teeth gnashing from the multinationals, their economic punditry conscripts and the professional political apparatus, tariffs are not raising prices. Go figure.
The consumer price index (CPI) increased 0.1% for the month, putting the annual inflation rate at 2.4%. Excluding food and energy, core CPI came in respectively at 0.1% and 2.8%, compared with forecasts for 0.3% and 2.9%. [BLS DATA HERE]
(Via CNBC) Consumer prices rose less than expected in May as President Donald Trump’s tariffs had yet to show significant impact on inflation, the Bureau of Labor Statistics reported Wednesday.
The consumer price index, a broad-based measure of goods and services across the sprawling U.S. economy, increased 0.1% for the month, putting the annual inflation rate at 2.4%. Economists surveyed by Dow Jones had been looking for respective readings of 0.2% and 2.4%.
Excluding food and energy, the core CPI came in respectively at 0.1% and 2.8%, compared with forecasts for 0.3% and 2.9%. Federal Reserve officials consider core a better measure of long-term trends, with several expressing concerns recently over the impact that tariffs would have on inflation.
The all-items annual rate marked a 0.1 percentage point step up from April while core was the same.
[…] Energy slipped 1% on the month, while new and used vehicle prices posted respective declines of 0.3% and 0.5%. Within energy, gasoline posted a 2.6% drop that took the year-over-year decrease to 12%.
Food increased 0.3% as did shelter, which the BLS said was the “primary factor” in the otherwise modest CPI increase. Egg prices fell 2.7% but were still up 41.5% from a year ago. Apparel posted a 0.4% drop.
Though shelter prices rose on the month, the 3.9% annual increase is the lowest rate since late 2021.
With the modest inflation moves, real average hourly earnings increased 0.3% for the month and were up 1.4% from a year ago. (read more)
What drove inflation before was energy prices, the Green New Deal (globally Build Back Better).
That era is over with Trump in charge of MAGAnomics.
Another winnamin!
Deeply Grateful!
We continue to PRAY!
“TRUST in The LORD with all your heart…”
More & More BLESSINGS to come!
Keep The FAITH everyone!
Amen to that “junebug”!
Bessent lays it out so well
I haven’t heard a great explanation like that since Milton Freidman.
That is their objective.
Great Numbers…proof of low inflation…Powell needs to get his ass in gear…
Left wing media will figure a way to put a negative spin on it…
Or probably bury it in the LA news…
PDJT should put out news to America about how Powell is destroying working Americans with high interest rates. Just keep pounding Powell every single day.
I understand all things are relative.
4.0-4.25 % is to my eye not high.
It allows savers unwilling to gamble in the Market casino such as we are to actually recoup what was denied us in the Obama years, a reasonable rate of return on our seed corn acquired through years of saving, which used to be a virtue once upon a time.
I’m old enough to remember high…
The Carter years were devastating, and we are nowhere near this exorbitant rates.
Well said.
That was long before the national debt was $37,000,000,000,000 and the government spent more money on interest payments than it does on national defense. Carter-like rates would spiral the US into default and throw the global economy into a prolonged depression.
Today every fraction of a percentage point interest rates go up represents tens of billions in extra debt-service we have to pay. (Or rather, that we have to roll onto the already gargantuan debt that will be passed down to our great-great grandchildren.)
Higher rates are great for lenders. Bad for borrowers. Retirees with savings are lending money to the bank. The US Treasury is the biggest borrower the world has ever known.
Yes, the Carter rates would finish us.
It’s a tragedy for this country that we didn’t clone Milton Friedman. Keynesians have much to answer for.
Anyone heard a peep out of Paul Krugman lately?
SPIT!!!
Remember whenn CD’,s were a thing, for retirees to be in?
My brother and I bought into CDs in 1993 when we were both kids.
I think it was 5.25%, not too bad for a couple 18 year olds working at the grocery store on a weekend.
A safe place, dutch. Oh yes, I most certainly do.
Should be enough of us out there that Powell cannot go anywhere without a dozen or more Americans to remind him anywhere he goes.
Public shaming one day at a time.
Since they EXCLUDE food and energy from CPI, the whole thing , in my mind, is misleading. Those (food and energy) ae what impacts average Americans MOST! So, when it is said that inflation is down, the average American says “BS!”
Feds will likely split the baby and drop rates 0.5%.
<sigh>
Doesn’t matter how great the numbers are, the D Rats and the corrupt news will say they suck. That is just how they are.
Thank heavens for the tariffs, otherwise prices would be falling through the floor!
/S
The Harvard Business Review’s Wednesday email also featured the lack of tariff-driven inflation, crediting shrewd inventory management (surely by Harvard MBAs) in advance of the tariffs. A nice if self-serving story, confounded only by the tariff “chaos” for which they blamed Trump, but which would have made such planning difficult.
That is amazing!
Long bond auction tomorrow? Hopefully the bid is strong with China appearing to be settled and this news.
They’ve got to try and keep their market share = prices down, also they always de-value their currency for the same reason.
Never be afraid to do the right thing because of economics. That’s what it’s all about.
Some how none of this is coming to Western NC. Food prices are going up and gasoline prices are down 5 cents.
BTW, we need ICE here to start raiding businesses…like small businesses like the one in Oklahoma.. there are a lot of Mexicans here who do not speak English and work and get drivers licenses…please, ICE…check it out. Actually, check all of NC out…we have one of the largest illegal residents in the country and at least some of them vote…
You lost me at “professional economic pundits”.
Let’s just call them what they actually are…..LIARS!….and well paid by the global cabal.
Meanwhile I will rejoice in the knowledge that yet again President Trump has put together an economic team
worthy of slaying our economic enemies.
MAGA Fabulous!
I am feeling so great on this steady diet of Winnamins & Cheetos!!
👊👊🇺🇸🇺🇸❤️❤️🙏🏻🙏🏻
I can’t stand all this winning.
LOL!
Good and good.
Trump, and non-commie states (Commiefornia, you can change) have no doubt seen a respite in energy prices. We are still waiting in Commiefornia with Gabbin’ Nuisance as “governor”. I’d call him the lead comrade.
Biden build back better ….. indeed!
What a laugh!
This is so awesome! So we Americans had to pay the government $70 Billion in import taxes for our imported goods. I love paying D.C. more taxes. Now D.C. has exactly 1% more money to waste. ($70 Billion = 1% of the $7 Trillion federal spending).
But, but, but egg prices….
As a person who understands markets and economics better than most people, this is not surprising. Tariffs are not inflationary (Dems had it wrong from the start, no surprise). Tariffs are deflationary because they slow economic growth, like a tax. Currently the Fed is behind the curve on easing. They need to ease .50. Ironically, this would put a lot of pressure on China because the US dollar would decrease in value relative to other currencies, and the yuan. China would be forced to devalue….which isn’t good for them.
And as it is unfolding, the story is NOT painting the manufacterers as characters for great sympathy.
Due to Substak and X, people are learning about the high quality purse, produced in CHINA, then shipped to Italy where they sew a zipper on, and raise the .price from $30 to $2000.
No sympathy for transnational conglomerates.
How is it that we haven’t abolished the CBO, as the rediculous conditions it imposes on any projections, render them useless?
They don’t count tariffs as income, nor DOGE
savings.
We need a Trumans advisory board of one-armed economists, so they can’t say “,One the ONE hand,…but then on the OTHR hand, blah, blah”.
Im a Patriot and glad for some things. Not enough! How do you allow a hike in retirement age and when do Hard working Americans who have been affected by all this you mention get a ……… Check. Brag all you want. Doesn’t mean anything. Pat your own back, doesn’t help me. A guy who should own land that his father should have been able to pass down.
Lets here about bringing the real backbone of this country up. Celebrate that!
Smarter people then me can figure out how to GIVE BACK to US. US Government, under a Presdient who has allowed me a rebel reborn life. A Patriot who gave up and lost hope admitidly. Where is the conversation about feeding the troops..IE…The men and woman like me who would drop it all to defend now!
Just saying to folks here and our Government. Show US the money. You can write a …..covid check. Figure out what real working americans deserve a 20k loan free of charge on some REAL lnad or something real for us. Or else, save all your bragging for yourself.
I pray God has grace and Trump has wosdom to use his Team of Fine Capable Moral Men and Beautiful Strong Courageous woman with no need to sell their flesh like the supposed Madonnas and Taylor swifts. May they find those of us whos heritage was stolen and retuen with the BACON of LAND OWNERSHIP.
My first and last ever rant.
Love you all.
Timothy