Tarifflation Narrative Falls Apart

The August producer price index (PPI) report delivered yet another blow to the doomsayers who predicted President Donald Trump’s tariffs would ignite inflation. Instead of climbing, the Bureau of Labor Statistics (BLS) said producer prices for final demand fell 0.1 percent in August.

Economists had expected a 0.3 percent gain, once again showing that Wall Street’s establishment economists are still attached to the tarifflation narrative . Year-over-year, PPI rose just 2.6 percent, far below forecasts of 3.3 percent.

The revision to July also tilted the trend lower, with the prior 0.9 percent jump reduced to 0.7 percent. Reality has undercut the claim that tariffs would produce a cascade of price hikes .

Margins Collapse Again and Goods Prices

See Full Page