CNN warns of delayed tariff impact on US inflation

Earlier, US stock indexes hit all-time highs amid low unemployment and inflation levels. In fact, the consumer price index is now even lower than when Donald Trump was inaugurated. These encouraging figures could push the president to take a tougher stance on tariffs, according to CNN.

The White House is growing increasingly confident that the US economy remains immune to the effects of trade conflicts. However, as many analysts warn, the real shocks are still to come.

So far, markets have reacted cautiously to the new tariffs. But the real threat lies in their delayed impact. First, manufacturers take the hit, then supply chains get disrupted, and consumers are the last to suffer. Retailers are selling off old inventory, which is softening the price shocks. Once those stockpiles dry up, though, inflation could spike sharply, CNN reports.

Federal Reserve Chair Jerome Powell has acknowledged rising prices in certain categories of goods. However, the website notes that overall inflation remains in check due to falling fuel prices.