Despite widespread fears to the contrary, President Donald Trump’s tariffs have yet to show up in any of the traditional data points measuring inflation.
In fact, separate readings this week on consumer and producer prices were downright benign, as indexes from the Bureau of Labor Statistics reported that prices rose just 0.1% in May.
The inflation scare is over, then, right?
To the contrary, the months ahead are still expected to show price increases driven by Trump’s desire to ensure the U.S. gets a fair shake with its global trading partners. So far, though, the duties have not driven prices higher, save for a few areas that are particularly sensitive to higher import costs.
At least three factors have conspired so far to keep inflation in check:
