A key Bureau of Labor Statistics inflation report showed price increases for a variety of tariff-sensitive items.
From clothing to auto parts to electronics and more, tariffs are making everyday items cost more at a time when the labor market is looking increasingly fragile.
A key Bureau of Labor Statistics inflation report released Thursday showed price increases for a variety of tariff-sensitive items.
Apparel prices rose 0.5% as did video and audio products. Motor vehicle parts climbed 0.6% while new car prices were up 0.3% and energy increased 0.7%. Groceries accelerated 0.6%, the biggest monthly move since August 2022. Furniture and bedding saw a 0.3% hit and are up 4.7% from a year ago while tools and hardware had a 0.8% jump, part of manufacturing-related goods that are particularly impacted.
More broadly, goods excluding food and energy rose 0.3% on the month and are up 1.5% from a year ago, the fastest rate since May 2023, according to Fitch Ratings. Coffee rose 3.6% on the month and is up 20.9% from a year ago.
Together, the increases may not sound dramatic. But they are enough to give both consumers and Federal Reserve policymakers at least some cause for concern.
„We’ve already been seeing tariffs in the data for several months“, said Luke Tilley, chief economist at Wilmington Trust. „Consumers were not in a really good place to handle the increased prices that are coming from tariffs.
