CPI Report Likely to Show Price Increases from Tariff Impact.

 

As tariffs start to take effect, the July CPI is expected to show a quicker rise in annual PR

The July Consumer Price Index (CPI) is set to be released on Tuesday at 8:30 a.m. ET, and it is expected to show a faster pace of annual price increases compared to June.

 Investors are still closely watching how President Trump's tariffs are impacting consumer spending after the data comes out.

Bloomberg forecasts that the overall CPI rose 2.8% year over year in July, a small increase from the 2.7% growth in June.

 Prices are expected to go up by 0.2% each month, which is slightly less than the 0.3% rise in June. This slowdown is mainly due to less severe food inflation and lower gas prices.

The core CPI, which measures inflation without including food and energy, is predicted to rise from 2.9% in June to 3.0% yearly.

 This increase suggests that slower inflation in services is no longer making up for higher product prices.

Also, core inflation is expected to increase by 0.3% month over month, up from a 0.2% rise in June.

 If this happens, it will be the highest monthly core inflation rate in six months.

After several months of falling prices, the effects of tariffs started to show in June.

 Prices for footwear went up 0.7%, and apparel increased 0.4%. The cost of furniture and bedding also rose by 0.4% per month, reversing a 0.8% drop in May. This indicates that consumers are beginning to feel the impact of the tariffs.

 

Wells said, "The July CPI is likely to show more signs that higher tariffs are pushing prices higher