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Rising inflation rate tops 4% as tariff effects push costs higher

Trailing 12-month inflation climbed from 2.4% in February to a 4.2% peak in May, according to the article, with tariffs cited as a key driver.

Sunday, August 9, 2026 · Written up by our desk · Inflation

The Motley Fool warns that an “inflation quadruple whammy” could undermine Wall Street’s recent record run, with investors facing pressure from rising prices described as being driven largely by “Trumpflation.” The piece notes that while moderate inflation is normal, trailing 12-month inflation has jumped from 2.4% in February to a peak of 4.2% in May.

The article attributes much of the acceleration to President Donald Trump’s tariff approach, citing sweeping global tariffs and reciprocal tariffs announced in April 2025, and noting that some tariffs were overturned by a U.S. Supreme Court ruling in February 2026.

It also argues that tariffs can raise production costs for U.S. manufacturers when duties are applied to unfinished imported goods, such as steel, with those higher costs potentially passed through.

The article frames the Fed’s 2% long-term inflation target as evidence that policymakers expect some inflation, but it says the current pace is fast enough to threaten the market’s bull-market momentum.

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