Silver to $39.50: Up 9.4% Past 30 Days
June’s consumer‐price report showed a clear “tariff inflation” effect: overall prices rose 0.3% from May and 2.7% from a year ago. Key contributors included a 1% jump in gasoline, 0.3% in groceries, and continued increases for big‐ticket imports—furniture, appliances, toys, and clothing. AllianceBernstein’s Eric Winograd noted durable‐goods prices rose year-over-year for the first time in three years, reflecting duties on Chinese and other foreign goods.
Core inflation hit 2.9% annually, driven by these import costs, even as housing inflation eased. The White House downplayed the impact—pointing to cheaper car prices despite auto and steel levies—and Trump again demanded rate cuts from the Fed. But higher tariffs on items from China, the EU, Brazil, and Mexico (like orange juice and tomatoes) suggest consumers may continue feeling the pinch. With inflation climbing and Fed Chair Jerome Powell cautious, rate cuts this year now look unlikely.
