Tariffs, Consumers, and the Inflation Impact

U.S. consumer prices likely increased sharply in November, highlighting affordability challenges partly due to import tariffs. The government shutdown delayed data collection, impacting the inflation and labor market reports. Economists cite tariffs for driving inflation, disproportionately affecting lower-income households amid slow wage growth.

U.S. consumer prices are projected to have soared to their highest in 1.5 years by November, economists suggest, attributing rising affordability challenges to import tariffs.

The Labor Department's Bureau of Labor Statistics remains unable to offer month-to-month data for November's Consumer Price Index due to the government's record 43-day shutdown delaying October's data collection. The year-on-year rates for both CPI and core CPI will be published, focusing attention on broader economic impacts.

The tariff-related inflation, noted by Andy Schneider of BNP Paribas, sees companies passing costs to consumers. While data collection delays may have skewed November's figures with holiday discounts, tariffs could continue affecting lower-income households disproportionately, highlighting ongoing economic strains in the U.S.

(With inputs from agencies.)