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Inflation accelerates again as tariffs lift input costs

Trailing 12-month inflation hit 4.2% in May, above the Fed’s 2.0% long-term target, after tariff measures pushed up production costs.

Sunday, July 19, 2026 · Written up by our desk · Inflation

After reaching record highs in early June, major U.S. stock indexes may not reflect how much inflation risk is building, with Yahoo Finance pointing to tariff driven price pressures as a growing factor for Wall Street.

The outlet said trailing 12-month inflation more than doubled above the Fed’s long-term 2.0% target, rising to a three-year high of 4.2% in May.

Yahoo Finance attributed the surge to two concurrent price shocks tied to President Donald Trump’s tariff policies, including sweeping tariffs announced in April 2025 and subsequent reinstatements after the U.S. Supreme Court invalidated most of the original measures in February 2026.

The outlet argued that adding duties to unfinished imported inputs, such as raw metals, can raise domestic production costs for finished goods, which can then be passed through to consumers over time.

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