Is it reasonable to assume that tariff inflation would show up first in the wholesale numbers? It seems logical.
DB2
These reports MIGHT show that American manufacturers are picking up the slack. B2B sales are not inflationary in the PPI.
The American importers have a 3-month supply of goods in the warehouses. Heard this morning on NPR. That means the full inflationary effects of the tariffs have not been as bad yet as they will get.
Meanwhile, short piece on the “news” last night: clothing prices are up 40% and shoes are up 44%. Fortunately, I bought 2 flannel shirts, 2 dress shirts, 2 pair of jeans, and a pair of sneakers, last year, when stuff was on sale.
Commodity Prices: The 2025 tariffs disproportionately affect clothing and textiles, with consumers facing 44% higher shoe prices and 40% higher apparel prices in the short-run. Shoes and apparel prices stay 20% and 18% higher in the long-run respectively.
Steve