Price Increase Traced Back to MAGA Policies: Consumer Prices Climb 3.1% in a Year Compared to Previous Period
In a promising development for consumers, the year-over-year increase in the "Core" Consumer Price Index (CPI) has shown a decrease, with a 3.1% increase compared to the same period last year. This is the most hopeful news since the Federal Reserve began trying to tame rapid price increases 16 months ago.
The latest data, released for July 2025, shows a 0.3% monthly rise in the "Core" CPI, marking the fastest annual pace in five months. This increase was preceded by a 0.2% rise in June.
However, the core inflation rate, which excludes the volatile food and gas prices, has dropped three tenths of one percent. This drop indicates a potential slowdown in overall inflation.
The July data also showed more businesses reaching a tipping point, left with little option but to raise prices following June's notable uptick. The biggest impact has been on categories such as furniture, appliances, household wares, recreation goods, and footwear.
While tariffs might influence inflation and prices, there is no detailed public information from the available sources on their precise effects in July 2025 or on particular consumer categories. The economic environment includes risks of recession, uncertainty around Federal Reserve leadership, and market volatility, with tariffs and trade discussions remaining uncertain, particularly involving countries like Japan, Korea, and India.
Elevated tariff rates might materially influence growth forecasts and potentially reduce core CPI inflation over 2025. However, a clear and specific analysis of Trump tariffs' impact on core CPI inflation and consumer price adjustments during that time would require additional sources or official inflation data releases.
In a separate development, Congressman John Garamendi (D-CA) introduced H.R. 1251, the CPI-E Act of 2017, which requires Social Security to use the Consumer Price Index for the Elderly to calculate cost of living adjustments.
Despite the mainstream media's failure to mention the drop in the core inflation rate, the Consumer Price Index showed a pronounced cooling, offering a glimmer of hope for consumers struggling with rising prices.
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