BlackRock Experts: Tariffs Drive Up Prices, US Inflation May Remain Above 2% Target

On July 16, Glenn Purves, the global macro head of BlackRock Investment Institute, stated that the rise in the U.S. core CPI for June was lower than expected, but more and more signs indicate that tariffs have driven up some prices. The May CPI report had already shown tariff-driven price increases for household appliances, and this situation continues. "We are now also seeing early signs of price increases for entertainment products such as video and audio equipment." He believes that most of the impact has yet to come, and the effects will intensify after companies exhaust the inventories built up to cope with tariffs. Due to pressures from goods and services, the inflation rate is likely to remain above the Fed's target of 2%. Who will ultimately bear the cost of tariffs: consumers, businesses, or exporters, will be key.