BlackRock: US CPI Shows Tariffs Are Gradually Pushing Up Prices, Most of the Impact Yet to Come

According to a report by Jinse Finance, Glenn Purves, Global Head of Macro at BlackRock Investment Institute, stated that while the U.S. core CPI increase in June was lower than expected, there are growing signs that tariffs have driven up certain prices. The May CPI report already showed tariff-driven price increases for household appliances, and this trend is continuing. “We are now also seeing early signs of price increases for entertainment products such as video and audio equipment.” He believes that most of the impact has yet to be felt, and that the effects will intensify once companies deplete the inventories they built up in response to tariffs. Since the pressure comes from both goods and services, the inflation rate is likely to remain above the Federal Reserve’s 2% target. Who will ultimately bear the cost of tariffs—consumers, businesses, or exporters—will be the key issue. (Jin10)