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With both the producer price index and the consumer price index still showing accelerations, consumers may be wondering why the price of goods across the board isn’t increasing more.
But logistics experts are warning that those higher prices are currently hiding in “the middle mile,” otherwise known as warehouses and distribution centers, and are yet to come.
The Trump administration’s back-and-forth on tariffs has had U.S. importers scrambling to pull forward their freight to mitigate those rates, with that inventory now sitting in warehouses.
Zachary Rogers, lead author of the Logistics Managers’ Index and assistant professor of supply chain management at Colorado State University, explained during the Port of Los Angeles July news update that the increase in inventory is the reason why price increases related to the tariffs have not been seen across the board.
