While prices for certain goods have declined, inflation remained elevated even before tariffs show up in the data.
by Andrew Ackerman and Rachel Lerman
Washington Post
President Donald Trump has insisted that prices are falling, even as consumers continually express concern about the economy. He has repeatedly attacked Federal Reserve Chair Jerome H. Powell for not lowering interest rates to offset the effects of his trade war. At the same time, he has dismissed concerns about inflation, claiming that “costs are down” and that there is “virtually NO INFLATION.”
The reality is complicated. Though inflation was cooling before Trump’s tariffs kicked in last month, data the government collects on the economy has not captured the effects of the tariffs yet and is unlikely to do so until this summer. And while prices for some goods such as oil and gas have come down — as Trump has repeatedly noted — economists say those data points overlook broader trends.
Here’s what to know about inflation and prices for common goods.