Inflation Ignites: How Soaring Tariffs Are Fueling Price Surges

Tariffs bite—consumers bleed. The inflation furnace roars back to life as trade barriers send prices into the stratosphere.

Here's the burn:

• Trade wars spark cost chain reactions—every tariff hike lands in your grocery bill

• Central banks scramble as their 'transitory' inflation forecasts go up in smoke

• Main Street wallets evaporate while Wall Street hedges with crypto and commodities

The bitter pill? These price hikes aren't bugs—they're features of protectionist policy. As always, retail gets scalped while the big players short the economy.

Key Takeaways

• The Consumer Price Index rose 2.7% over 12 months in July.
• The annual inflation rate remained above the Federal Reserve's goal of 2%.
  
• President Donald Trump's far-reaching tariffs have pushed up prices on many products.
  

Inflation accelerated in July as President Donald Trump's far-reaching import taxes pushed up prices for a variety of products.

Prices as measured by the Consumer Price Index ROSE 2.7% over the last 12 months in July, the same as in June, the Bureau of Labor Statistics said Tuesday. "Core" inflation, which excludes the volatile prices for food and energy, rose 3.1% over the last year, up from a 2.9% increase in June.

The uptick kept the inflation rate above the Federal Reserve's target of a 2% annual rate and highlighted the rising impact of Trump's widespread tariffs on most countries and products brought into the U.S. from abroad, which he began implementing in February.

The U.S. shippers, businesses and consumers now pay an average of 18.6% in tariffs on imports, the highest tax rate since 1933, according to the Yale Budget Lab. Companies will ultimately pass 67% of those added costs on to consumers, economists at Goldman Sachs led by Elsie Peng estimated this week. Companies were able to delay immediate price hikes by stockpiling inventory ahead of the tariffs, among other tactics.