CPI: Latest inflation report shows prices rose by the fastest pace since January. Follow for live updates

Consumer Price Index reports in recent months have provided clear indications that prices for tariff-impacted goods are on the rise.

Economists have been watching the “core goods” category (which excludes gas and food) for signs of tariff-related costs being passed along to consumers. In August, core goods prices rose 0.3%, its highest rate in seven months.

“The tariff impact is increasingly visible, though pass-through remains gradual and uneven,” wrote Gregory Daco, chief economist at EY-Parthenon, in an analyst note Thursday about inflation.

Some of the categories with the biggest monthly price leaps in August were those heavily imported and highly exposed to tariffs: Sewing machines, fabric and supplies (+9.1%); jewelry (+6.8%); women’s outerwear (+4.4%); instant coffee (+4.9%); tomatoes (+4.5); beverage materials including coffee and tea (+2.8%); bananas (+2.1%).

“Looking ahead, inflationary pressures are likely to persist as tariffs continue to filter through, but the pace of acceleration should remain contained relative to the recent post-Covid experience,” Daco wrote.

Stubborn inflation is contributing to a K-shaped economy, where consumer spending is concentrated in higher-income households, with lower-income tiers pulling back on their shopping due to “muted pay increases and mounting financial strain,” Daco noted.

Morning Consult said in a note this week that an October survey showed the share of adults not noticing tariff-related price increases had fallen to “a new low of 8%” this month.