Tariff Pass-Through Limited So Far, US Data Show

New data from the Trump administration Tuesday indicated underlying US inflation rose less than expected in December. The core consumer price index, which excludes the often volatile food and energy categories, increased 0.2% from November, according to the Bureau of Labor Statistics, part of the US Department of Labor. On an annual basis, it advanced 2.6%, matching a four-year low.

While the impact of last year’s government shutdown on the data hasn’t fully unwound, “the key positive in this report is flat core goods prices, reinforcing the view that tariff pass‑through to consumers has been much milder than anticipated,” Olu Sonola, head of US economic research at Fitch Ratings, said in a note.