Tariffs are showing up in core goods within CPI, says Brookings' Wendy Edelberg

Inflation Trends and Tariff Effects - The year-over-year change in the prices of core goods is reported at 1.4%, indicating a modest inflationary effect, particularly influenced by tariffs [3] - The headline Consumer Price Index (CPI) is at 2.7% year-over-year, which is seen as a positive sign, although it is compared to higher inflation numbers from the previous year [4] - Tariffs are expected to continue impacting inflation through 2026 and possibly into 2027, as firms are still working through inventory hoarded before the tariffs were implemented [7] Labor Market and Economic Outlook - The labor market appears slightly soft, with monthly payroll employment gains around 20,000, which is below the estimated break-even point influenced by immigration [8] - There are expectations of lower interest rates alongside higher inflation, which may not align with market predictions regarding the Federal Reserve's future actions [9]