Trump's Tariffs Aid Inflation

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temporary inflation drop

USA Today

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Business

Business & Economics

CPI report: Trump's tariffs earn some points for slowing - yes, slowing - inflation. How?

Summary

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84% Informative

President Donald Trump ’s sweeping tariffs are helping tamp down inflation.

In March , overall inflation dipped to a five-month low of 2.4% and a core measure that strips out volatile food and energy fell to 2.8% .

Few forecasters, of course, believe a temporary inflation drop-off is worth a coming economic downturn.

The pullback could make it more challenging for the Fed to explain why it's holding off on market-friendly interest rate cuts.

But he expects tariffs to start pushing up prices for used cars and other items as early as June while Sriram figures the acceleration will begin in July . Both economists expect core inflation to rise to about 4% by the end of the year . “The inflation numbers are going to look good in April and possibly May ," Sweet said. “But the boost to inflation from tariffs is coming.” This article originally appeared on USA TODAY: Are Trump 's tariffs actually slowing inflation (for now?).

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Neutral language

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formal

Language

English

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not hateful