Inflation Vibes Get Another Nasty Surprise
The consumer price index suggests that the jump in expectations for price gains might not be over, and tariffs won’t help.
Grocery surprise.
Photographer: David Paul Morris/Bloomberg
Americans are growing concerned about sticky inflation, and President-elect Donald Trump needs to make sure that he doesn’t fan those anxieties with untimely tax cuts or tariffs that juice the costs of imports.
The latest data suggest why it’s a particularly tricky time in inflation psychology. A report Wednesday showed that the consumer price index rose 0.39% in December, the biggest one-month increase since February. Although much of the heat came from famously volatile categories, they are also the areas that hit consumer psychology most directly: pump prices and supermarket items. Supply concerns and a cold snap contributed to a 4.3% increase in the energy commodities index, and food at home jumped for a second month, as bird flu contributed to a surge in egg prices.