Trump’s tariffs may have caused inflation – researchers

Estimates indicate tariffs may have already contributed 0.1 percentage points to CPI, authors find

inflation-road-sign

The effects of the US-China trade war may have already fed into inflation, though the long-term effect on prices is still unclear, an economic letter published by the Federal Reserve Bank of San Francisco finds.

Galina Hale, Bart Hobijn, Fernanda Nechio and Doris Wilson find that the tariffs implemented thus far may have contributed an estimated 0.1 percentage points to consumer price inflation and 0.4 percentage points to inflation for business investment goods.

To estimate the direct effects

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