US Inflation Trends and Consumer Resilience Signal Economic Shifts
TL;DR
Inflation in core services, which account for two-thirds of consumer spending, continues to accelerate, driven by non-housing services, while durable goods prices, affected by tariffs, have turned negative. Overall, inflation remains above the Fed's 2% target, with services inflation being particularly persistent and difficult to control, and companies still enjoying high profits despite the challenging pricing environment.
- Core Services PCE Inflation Spikes (Not Tariffed), Durable Goods Inflation (where Tariffs Hit) Turns Negative Month to Month Wolf Street
- Core inflation rose to 2.9% in July, highest since February CNBC
- Charting the Global Economy: US Consumers Remain Resilient Bloomberg.com
- US consumer spending strong; core inflation warmer on services Reuters
- Inflation is climbing. Trump might still get lower rates. Politico
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