📈July CPI shows inflation climbing as Trump tariffs hit consumer prices

Economy
Tax & Budget
Trade & Commerce

Today's Consumer Price Index report reveals inflation at 2.7% annually with core inflation accelerating to 3.1%—the fastest pace in five months. Trump's tariffs are starting to affect consumer costs, with coffee up 14.8% and ground beef up 11.5% since last year, while airline fares jumped 4% in July alone. The data shows how Biden's economic recovery from pandemic lows transitioned into Trump's tariff-driven price increases that hit working families hardest.

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Why This Matters

Your grocery bill reveals who controls economic policy

Coffee costs jumped 14.8% and ground beef 11.5% since Trump took office, while gas prices fell 9.5%—tariffs hit imports while domestic energy benefits from deregulation.

Core inflation at 3.1% signals tariffs are working exactly as economists predicted

When you tax imports, consumers pay higher prices—Trump's "beautiful tariffs" function as a 20% sales tax on everything from clothes to cars.

Biden delivered 2.7% inflation after inheriting 9% peak from pandemic chaos

The economic recovery cut unemployment from 14.8% to 3.6% and stabilized prices, but Trump's tariffs threaten to reignite inflation that hurts working families most.

Federal Reserve faces impossible choice between rate cuts and inflation control

Powell must decide whether to cut rates to boost growth or hold steady to prevent tariff-driven prices from spiraling—your mortgage and savings account hang in the balance.

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