U.S. Producer Price Stabilization..."Review of gradual tariff hike"

2025.01.16. AM 01:36
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[Anchor]
Producer prices, a leading indicator of U.S. consumer prices, have stabilized.

In the meantime, following reports that Trump's economic team will selectively impose tariffs, some say that they are considering gradually increasing tariffs this time.

I'm correspondent Lee Seung-yoon from New York.

[Reporter]
The U.S. producer price index rose 0.2% month-on-month last month, below experts' forecasts of 0.4%.

Excluding energy and food, the core producer price index rose 0.1% month-on-month, also below the 0.3% forecast.

Producer prices, also called wholesale prices, are seen as a leading indicator of consumer prices in that they are reflected in final consumer goods prices with a certain time lag.

However, the observation that the U.S. Federal Reserve will keep interest rates unchanged for the time being remains bolstered.

This is due to the prospect that tariffs, tax cuts and immigrant deportation policies of the second Trump administration will trigger inflation.

[Adam Coons / Chief Investment Officer, Wintrop Capital Management: If inflation gets worse, the Fed won't be able to cut interest rates. At the same time, the job market is likely to deteriorate.

Trump's second-term economic team is considering a gradual increase in universal tariffs, Bloomberg reported, as Trump has signaled the creation of a "foreign import office" to collect tariffs from foreign countries.

Earlier, the Washington Post reported that Trump's aides are considering imposing universal tariffs only on certain items that are critical to security.

It seems that Trump's economic team is preparing a buffer to prevent Trump's pledges from leading to inflation.

Moody's Analytics has analyzed that not harming the already solid U.S. economy will be the success of the second Trump administration.

I'm YTN's Lee Seungyoon from New York.


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