Tariff-driven inflation isn’t showing up in the data just yet, but Dana Peterson, Chief Economist, The Conference Board says it’s coming.
Transcript:
CAROLINE WOODS: When it comes to the inflationary impact of tariffs, do you think it’s a case of not yet or not at all?
DANA PETERSON: I think it’s a case of not yet. Let’s remember that in the first quarter, many businesses accelerated their purchases of inventories. And so consumers are probably out there buying things that are much lower in price and pre-tariff. But certainly once those inventories run down, consumers will be faced with those tariffs. And so that will probably show up in inflation readings at the second half of the year. Again, we have to remember that these prices tariffs go through many rounds before it gets to the consumer. It could be the manufacturer or the recipient at the docks, then the wholesaler, then the retailer. And at each level you could have some inflation added on for convenience. That ultimately means higher prices for the consumer. So it’s really not yet. It’s more of a second half issue.
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