‘Experts’ Wrong Again: Inflation Remains Steady, Comes In Below Expectations

To no one’s surprise, besides the “experts” who get paid for their predictions, the consumer price index increased just 0.2% month-over-month in July and remained at a steady year-over-year rate of 2.7%.

The consumer price index (CPI), which is a widely viewed measure of inflation, once again showed a lower year-over-year increase than what economists predicted as more of President Donald Trump’s tariffs go into effect, CNBC reported. The economic report published Tuesday by the Bureau of Labor Statistics marked the second-straight month showing an annual inflation rate of 2.7%.

With another solid inflation report under his belt, Trump is again putting pressure on the Federal Reserve to lower interest rates at its next meeting, which is scheduled for September 16-17. In a Truth Social post on Tuesday morning, Trump said that “Jerome ‘Too Late’ Powell must NOW lower the rate.”

“The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board,” Trump added.

Core CPI, which excludes food and energy prices, rose 0.3% for the month and 3.1% for the year. The monthly increase was in line with expectations, while the annual core CPI rise was slightly above what economists predicted, according to CNBC. Most of the CPI increase was driven by a rise in shelter prices, the BLS reported. Energy prices, meanwhile, dropped 1.1% and food prices remained steady. Prices for used cars and trucks jumped 0.5% while transportation and medical care services also saw a rise of 0.8%.

The CPI report showed that Trump’s tariffs have had little to no effect on prices. Household furnishings and supplies showed a slight increase of 0.7%, but other products that are largely imported, including clothing and canned fruits and vegetables, remained mostly flat.

Former White House economist Jared Bernstein, who worked under former President Joe Biden, even admitted that tariffs are not having a major effect on inflation “at this point.”

“The tariffs are in the numbers, but they’re certainly not jumping out hair on fire at this point,” Bernstein told CNBC.

CNN was also surprised by the low inflation numbers reported on Tuesday.

“Look at that food. This is where people spend their money, right? … Food [is] flat, 0%, and actually down at the grocery store by 0.1%.”

Stocks rose Tuesday morning following the lighter-than-expected inflation report, with the Dow Jones Industrial Average and the S&P 500 jumping 0.6%. The Nasdaq Composite also rose 0.8% on the good economic news.

Trump’s tariffs on over 90 countries finally went into effect last week after he extended the deadline and struck numerous trade deals. Some of the president’s highest tariff rates include 50% tariffs on India and Brazil, while other tariff rates range from 15% to 40%. On Monday, the president extended the tariff deadline for China for an additional 90 days as his trade officials seek to work out a deal with the communist country.