US Inflation Holds Steady in July Despite Tariffs, Markets Rise, BLS Commissioner Nominated
US inflation remained stable in July, largely due to falling gasoline prices, despite President Trump's tariffs. This stability boosted market optimism, as attention shifts to the new Bureau of Labor Statistics commissioner nomination.
Overview
US inflation remained stable in July, defying earlier concerns about significant impacts from President Trump's tariffs, indicating a resilient economic environment.
A crucial factor in tempering overall inflation was a 9.5% drop in gasoline prices during July, significantly contributing to consumer price stability nationwide.
President Trump's tariffs have elevated the average U.S. tariff rate to 18-20% since his inauguration, reaching the highest level recorded since the early 1930s.
Stock futures, including S&P 500 and Nasdaq 100, rose following the release of consumer prices data, reflecting increased market optimism regarding the current economic outlook.
Markets are closely monitoring President Trump's nomination of E.J. Antoni as the new Bureau of Labor Statistics commissioner, a key appointment after Erika McEntarfer's recent firing.
Analysis
Center-leaning sources collectively frame the inflation data by emphasizing President Trump's tariffs as a significant, if not primary, upward pressure on prices. They highlight the direct link between tariffs and rising costs, even when acknowledging other mitigating factors, and often project a future where tariffs will increasingly impact consumer prices.
Sources (21)
Center (9)
FAQ
US inflation remained stable in July primarily due to a significant 9.5% drop in gasoline prices, which helped offset the inflationary impact of tariffs introduced by President Trump.
Gasoline prices fell by 9.5% year over year and 2.2% over the month of July, which was a crucial factor in keeping the overall inflation rate steady.
The nomination of E.J. Antoni as the new Bureau of Labor Statistics commissioner is significant because it comes after the recent firing of Erika McEntarfer, and the role is key for overseeing labor statistics including inflation data.
Since President Trump's inauguration, the average U.S. tariff rate has increased to 18-20%, the highest level recorded since the early 1930s.
Following the release of the July consumer prices data, stock futures such as the S&P 500 and Nasdaq 100 rose, reflecting increased market optimism about the economic outlook.
History
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