Inflation on many everyday items was entirely due to tariffs, NY Fed says
Tariffs added 2.9 percentage points to inflation in 67 categories of goods by February 2026, researchers at the New York Federal Reserve found.
TL;DR
- The New York Federal Reserve found that tariffs increased the cost of 67 categories of goods by 2.9 percentage points.
- Without tariffs, prices for these goods would have decreased by almost 1%.
- The impact on consumer prices is larger and more prolonged than just the direct effect of tariffs.
- Approximately two-thirds of the price increase is from the levies themselves, with the rest from knock-on effects.
- Consumers are expected to pay elevated prices into 2027 due to the policy.
- The White House stated that the cost of tariffs would be borne by foreign exporters, but the report suggests otherwise.
- About 26% of last year's tariff increases ended up as higher prices for consumers.