Heavy tariffs did not have much effect on many things
Despite the US President Donald Trump imposed heavy tariffs on imports from several countries, the US retail inflation in April came to 2.3 percent in a row for the third consecutive month. In the data released on Tuesday, the Labor Department said that in April, consumer prices rose 2.3 percent compared to 1 year ago, which is the lowest increase in 4 years. The retail inflation rate was 2.4 percent on an annual basis in March. On a monthly basis, prices increased by 0.2 percent in April. Prices of grocery accessories (grocery) declined by 0.4 percent, which is the biggest decline since September, 2020.
Heavy tariffs did not have much effect on many things
The report of the Labor Department shows that the heavy tariffs imposed in early April have not yet had much effect on the prices of many things. However, the prices of furniture have seen a 1.5 percent increase. Trump has amended the new tariff rate several times implemented from April 2. Despite this, the average fee is about 18 percent, which is about 6 times and the highest in the last 90 years as before Trump assumed the president in January. Economists believe that inflation may increase due to the widespread impact of tariffs in the coming months.
Inflation may increase in future in America
Tariffs imposed on steel and aluminum by the Trump administration and more tax on goods imported from China may take time to show impact on consumer goods. Economists say that the average customs duty has now increased considerably, which can slow down the growth rate of the US economy and increase inflation. High tariff has also created a difficult situation for the Federal Reserve, as it has increased the risk of both high inflation and high unemployment.
With PTI inputs
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