America is starting to eat Trump's tariffs TACO salad, UBS says
Briefly

June's inflation rate rose to 2.7%, the highest in five months. UBS Global Wealth Management analyzed core goods, revealing a two-year peak driven by new tariffs affecting household products, appliances, electronics, apparel, and toys. This surge indicates a delayed response to tariffs, as there is a gap between the cost announcements and when consumers feel the price increases. Retail sales for categories heavily influenced by tariffs have decreased, even as overall retail volumes increased slightly.
Haefele highlighted that core goods experienced their highest increase in two years, driven by the effects of tariffs on household furnishings, appliances, electronics, apparel, and toys. This surge indicates the looming impact of tariff-related costs as they gradually filter through to consumers, with a lag between announcement, stockpiling by importers, and retail pricing.
Analysts noted that while certain sectors like electronics and home furnishings saw a drop in retail sales due to inflationary pressures—specifically a 2% decline for electronics and a 1.1% decline for home furnishings—overall retail sales volume still exhibited a slight increase, up 0.4% month-over-month.
Read at Fortune
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