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.
