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St. Louis Fed - FRED Bloganalysis

Durable goods inflation and effective tariffs

St. Louis Fed - FRED Blog
Thursday, July 2, 2026 at 1:00 PM
~4 min read
InflationTrade

Original Report

The takeaway When tariffs were relatively stable, prices for durable goods such as appliances, electronics, and furniture were declining by as much as 3% year-over-year. But in 2025, the effective...

The takeaway When tariffs were relatively stable, prices for durable goods such as appliances, electronics, and furniture were declining by as much as 3% year-over-year. But in 2025, the effective tariff rate surged to over 11% and durable goods prices … Continue reading →

Glass House Analysis

International economic policy has concrete impacts far beyond diplomatic circles. Tariffs show up in the price of goods at stores, supply chain disruptions affect whether products are on shelves, and trade tensions can mean job losses in export-dependent industries. The globalized economy means that decisions made abroad can affect workers and consumers domestically.

Inflation is the silent tax that erodes purchasing power, hitting hardest those who can least afford it. When grocery bills rise faster than wages, families face impossible choices between food, medicine, and rent. Unlike market volatility that mainly affects investors, inflation touches everyone who buys groceries, fills a gas tank, or pays rent.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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