food price rise<\/a> at a rate that could be considered a cause for concern, particularly if things keep up the way they are — which they might just if the newly imposed higher tariff fees on goods purchased from outside of the United States remains in place. If this is the case, then consumers should brace themselves for skyrocketing price hikes in the coming weeks or months.<\/p>\nInflation ballooning causing a food price rise<\/h2>\n
Re-elected President Donald Trump has made tall claims pushing for interest rates to be cut and even went so far as to promise to \u201cimmediately bring down prices, starting day one,” and yet no substantial change is to be seen. In fact, things seem to be worsening not even a month into his presidency.<\/p>\n
It appears that the inflation rate has unexpectedly risen to 3% meaning consumers can say goodbye to any hope of the Federal Reserve lowering interest rates in the near future.<\/p>\n
Official figures shows that the consumer price index rose at an annual rate of 3% for January. This is a slight yet significant increase from December where the consumer price index was at 2.9%. At this time economists had predicted that the inflation rate would remain stagnant but the 0.5% increase from December to January has proven them wrong it seems. Initially, economists had predicted a forecast of 0.3% on a month to month basis.<\/p>\n
Additionally, the “core” index — which is an index that does not include food and energy due to its volatile nature — also showed an increase higher than what was predicted. The core index rose from 3.2% in December to 3.3% in January. This shocked Wall Street who had expected the rate to drop to 3.1%.<\/p>\n
Tariff talk<\/h2>\n
President Trump has recently imposed increased tariffs on goods imported to the United States, which appears to be severely impacting the supply chain for the retail industry at large.<\/p>\n
Goods imported from Mexico and Canada will now face a 25% tariff and goods imported from China will face a 10% tariff. The increased tariffs on Mexico and China have currently been put on pause for the month as talks continue, however the tariffs on China are very much in effect.<\/p>\n
As a result, retailers from various industries, particularly tech or clothing, are now scrambling to find alternate sourcing options and soon, or else they risk running at a loss. This is coming at a time where the retail industry as a whole is already struggling greatly. If this tariff trouble snowballs out of control, consumers are looking at exponential price hikes during the interim before things can potentially be stabilized once again.<\/p>\n
Trump’s reasoning for the increased tariffs is to support locally produced goods and allegedly to slow down the trade of fentanyl in the country. Unfortunately it seems the impact of this is not going to be as good as his reasoning and economists fear that this tariff strategy is only going to further aggravate inflation rates.<\/p>\n
During a speech, Trump made a sweeping declaration saying, “Prices will come down. You just watch, they\u2019ll come down, and they\u2019ll come down fast.” Despite this bold promise, when asked by\u00a0Fox News<\/em> about when families would be able to “feel prices going down,” the president avoided answering the question by claiming that other countries are taking advantage of the United States.<\/p>\n","protected":false},"excerpt":{"rendered":"One of the biggest promises made by Donald Trump during his election campaign was to cut down the prices of groceries thereby making the cost of living ever so slightly cheaper. This was a promise that was meant to be put in motion from day one. However, now that Trump has been elected to office, […]<\/p>\n","protected":false},"author":4,"featured_media":1192,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","override":[{"template":"1","parallax":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","share_position":"hide","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_date":"1","post_date_format":"custom","post_date_format_custom":"m\/d\/Y H:i","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"image_override":[{"single_post_thumbnail_size":"no-crop","single_post_gallery_size":"crop-715"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0"},"jnews_primary_category":[],"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1171","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/posts\/1171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/comments?post=1171"}],"version-history":[{"count":0,"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/posts\/1171\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/media\/1192"}],"wp:attachment":[{"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/media?parent=1171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/categories?post=1171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gcn.com\/us\/wp-json\/wp\/v2\/tags?post=1171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}