US President Donald Trump’s tariffs may not be having the desired effect on the economy. The US producer price index (PPI) remained flat in June, suggesting that wholesale prices remain stagnant. However, this might be misleading.
The PPI measures prices at the level of manufacturers in the US, excluding imports. On the other hand, the consumer price index (CPI), which considers all goods and services purchased by consumers, shows a different picture. The CPI saw a 0.4% increase in apparel prices, despite new vehicle prices falling 0.3%. This suggests that tariffs are starting to show effects on some components of the CPI.
However, it’s unclear what the full impact of tariffs will be until August 1, when updated tariffs kick in, provided Trump sticks to the deadline this time.
Source: https://www.cnbc.com/2025/07/17/cnbc-daily-open-flat-ppi-doesnt-mean-us-is-unscathed-from-tariffs-.html