INCREASING INFLATION

After steadily falling since mid-2022, inflation is again rising. Last month, Y-o-Y import prices rose at their fastest pace this year, Y-o-Y wholesale prices rose at the fastest pace in three years, and Y-o-Y wholesale vegetable prices rose 39% last month. Annual inflation as measured by the CPI has now risen three straight months, all while the labor market weakens. Tariffs are starting to slowly make their presence felt.