BlackRock: US CPI shows tariffs are gradually pushing up prices, with most of the impact yet to come

Glenn Purves, global macro head at BlackRock Investment Institute, said the U.S. core CPI rose less than expected in June, but there are growing signs that tariffs are driving some price increases. The May CPI report already showed tariff-driven price increases for home appliances, and that continues, "We are also now seeing early signs of price increases for entertainment products such as video and audio equipment". He believes most of the impact is yet to come, and will intensify after companies have exhausted the inventory they built in response to the tariffs. Inflation is likely to stay above the Fed's 2% target as the pressure comes from goods and services. Who will ultimately bear the cost of the tariffs: consumers, businesses or exporters, that will be key. (Golden Ten)