BAKERSFIELD, Calif. (KERO) — The CPI is one of the main data tools used by the US government to measure and track inflation. Since the recent tariffs acts made by President Trump, consumers are seeing an increase in everyday items.
- Current CPI is reporting on the month of March, numbers are expected to rise since the tariffs started in the month of April.
- The CPI normally sees an increase of 0.2% now they are expecting an increase of 2-3%.
- Gearhart says that this recent index was created before the tariffs and consumers should expect to see a dramatic change. Economists fear that we may enter a recession within the year.
BROADCAST TRANSCRIPT:
Since the president's most recent tariffs act, consumers may start seeing prices go up everyday essentials like phones or their favorite department store. I'm Eric J. Dockery, your Bakersfield neighborhood reporter. The Consumer Price Index normally sees increases around 0.2 percent. Now with the changes they are seeing numbers that are close to 2-3%.
The CPI is a consumer price index and its one of the main data tools used by the US government. To measure and track inflation or changes in prices across a variety of different categories.
Richard Gearhart an Economics Professor at CSUB said "Its going to be a double whammy because the purchasing power that you have basically the money in your wallet has fallen dramatically. Imagine taking $2 out of your wallet for every $100 and just lighting them on fire that's what this tariff inflation is going to be."
Consumers have already started to see a change in gas, groceries, and even makeup and hair products within the last few months. Gearhart says this recent index was created before the tariffs were put in place. He warns consumers to expect to see a dramatic change.
Rebecca Perreault Kern County Resident said "What concerns me is when you walk into a grocery store you see a young family struggling. What used to cost you $20 in groceries is now close to $50. Just basic things like milk, and eggs, are necessaries and not luxury items. Its just really sad you have families working paycheck to paycheck and now they are working even harder. "
Economists are curious about how the next few months will trn out due to the tariffs and inflation. Some are predicting we will experience another recession.
"Goldman Sachs expects a recession, so essentially there is a 50% chance of a recession in the next few months coming. If you put the tariffs back and if the trade war ends up being what most economist expects we could see a possible mild to moderate recession starting this year." said Gearhart
Gearhart suggest consumers reduce unnecessary luxury spending like Uber Eats, Doordash, or even Starbucks and make coffee at home. He says saving a little will prepare you and have a considerable impact on consumers wallets.
"Economists are expecting the inflation rate to go up by maybe a full percentage point. Which is a dramatic jump up, which is mostly going to be related to food and automobile prices." said Gearhart
The next Consumer Price Index that will cover the month of April, and the changes that were made will be released on May 13. For 23ABC I'm Eric J. Dockery your Bakersfield neighborhood reporter.
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