New government data shows the cost of consumer goods increased slightly last month, but the true effect of the higher tariffs haven't hit consumers yet.

Washington

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

Recent government data indicates that consumer prices have risen slightly, but the majority of tariff-related costs are still being absorbed by U.S. businesses rather than consumers. Inflation held steady at 2.7%, with core inflation—excluding food and energy—rising to 3.1%, a key metric for the Federal Reserve. 

Everyday expenses such as groceries, medical care, and car insurance have seen notable increases over the past year, while energy costs have declined. Additionally, President Trump has nominated E.J. Antoni, a conservative economist, to head the Bureau of Labor Statistics, following the dismissal of the previous director. Antoni is known for advocating changes to how jobs data is collected.

What the latest CPI data says about tariff impact

We begin tonight with a focus on the economy. New government data shows the cost of consumer goods increased slightly last month, but the true effect of the higher tariffs haven't hit consumers yet. As a Goldman Sachs report shows, 64% of those costs are still being absorbed by U.S. businesses. Joining me now is CBS News senior business and technology correspondent Jolene Kent. So, Jolene, you looked at these numbers. What do they tell you? Well, they tell me that inflation held relatively steady, another 2.7%. But when you take out all of that volatile food and energy, you'll see that core inflation went up 3.1%. And that is the metric that the Federal Reserve cares about when it comes to reading how prices are going for consumers. Looking at that information, it seems that it is not hot enough to stop the Federal Reserve from changing course. We do expect the Fed to cut interest rates at that September Fed meeting in the middle of the month. But looking at what this is, we are seeing some impact on prices from tariffs, John. And where are we seeing that impact from tariffs on prices? You know, it's on everyday items and every week expenses that you and I may have, right? We're talking about groceries, meat, poultry, fish and eggs, for example, up 5.2% compared to a year ago. You also have medical care services up 4.3%, used car and trucks up almost 5% in price, and car insurance up 5.3%. But the good news about this number, this headline 2.7% inflation rate, is it didn't go up that much because energy costs, fuel, that actually dropped compared to a year ago, John. And Jolene, yesterday, President Trump announced that he's got a new nominee to replace the head of the Bureau of Labor Statistics, E.J. Antoni. Normally, you and I wouldn't be talking about the head of the BLS. Why are we and what do we know about this nominee? Well, of course, President Trump fired the head of the BLS after the most recent jobs report and that data was announced. What do we know about him? He's known to be a conservative economist. He's the chief economist at the Heritage Foundation. And he does want to change how the numbers are collected when it comes to the jobs report. He posted on X that he does believe that there needs to be a better, more accurate way of collecting that data that the president says he's concerned about, John.

The National Guard has started to patrol the streets of Washington after U.S. President Donald Trump declared a crime emergency. He’s also ordered troops to clear out all homeless encampments by the end of the week.

National Guard starts patrolling Washington

Record-high temperatures across Europe are fanning wildfires across the continent. Experts say a warming climate and an increase in flammable vegetation from rural depopulation are major factors.

Madrid

Historic heat fuels fires across Europe

Hungary's PM Viktor Orbán said the EU attempts to set conditions for a meeting to which leaders of the EU were not invited. He also called for an EU-Russia summit.

Brussels

Ukraine Invasion

EU leaders rally behind Ukraine ahead of Trump-Putin talks

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Trump claims 'land swapping' between Russia, Ukraine will happen

Taylor Swift confirmed her 12th studio album, "The Life of a Showgirl," in a teaser for her upcoming appearance on her boyfriend Travis Kelce's podcast. Swift did not disclose the release date of the album.

Taylor Swift announces new album, 'The Life of a Showgirl'

U.S. President Donald Trump said that his planned meeting with Russian President Vladimir Putin in Alaska on Friday will be to "feel out" the leader as pressure mounts for Russia and Ukraine to make a peace deal.

Trump to meet with Putin in Alaska on Friday

A meeting between US President Donald Trump and Russian President Vladimir Putin is set to take place in Alaska, with European leaders notably excluded from the talks. Until Europe can defend itself, it's not likely to be invited to a great power dialogue, experts have told Euronews.

Alaska

Europe frozen out as U.S. and Russia prepare for Alaska talks

U.S. President Donald Trump said on Monday that Kyiv and Moscow will both have to cede land to end the war in Ukraine and talks with Russian President Vladimir Putin this week will instantly show whether the Kremlin leader is willing to make a deal.

Trump says both sides in Ukraine war will need to cede territory

A prominent Al Jazeera journalist, who had previously been threatened by Israel, was killed along with four colleagues and another journalist in an Israeli airstrike in an attack condemned by journalists and rights groups.

Jerusalem

Middle East Conflict

Israeli strike kills Al Jazeera journalists in Gaza

At last one person is dead, dozens are injured and two people are unaccounted for after an explosion at the U.S. Steel Clairton plant in Pennsylvania on Monday.

Clairton

At least 1 dead, dozens injured in U.S. Steel plant explosion

President Donald Trump has placed the Metropolitan Police Department under federal control and announced he's activating the National Guard to combat crime in Washington, D.C.

Trump deploying National Guard to Washington, D.C.

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair.

Trump and Putin set to meet on Friday without Zelenskyy

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Kyiv

Ukraine fights for a seat at the table ahead of Trump-Putin summit

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Tel Aviv-Yafo

Netanyahu defends plan to expand war in Gaza

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Anchorage

Countdown begins to Trump-Putin meeting, without Zelenskyy

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Milwaukee

Milwaukee inundated with floodwaters, one dead in Nebraska

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Major fires continue to burn across western U.S.

President Donald Trump's envoy met with the Qatari prime minister on Saturday in Spain to discuss possible deals to end the Israel-Hamas war in Gaza, as Israel's military plans to expand into Gaza City. Meanwhile, families of Israeli hostages and Palestinians alike are pleading for peace.

Families of Israeli hostages, Palestinians plead for ceasefire

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Israeli anti-government protesters take to the streets in Tel Aviv

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Europe stresses need to protect Ukraine ahead of Trump-Putin meet

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Ukraine, Europe counter Russian ceasefire proposal ahead of US talks

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Bournemouth

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Atlanta

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San Luis Obispo

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President Trump is preparing to take another swing at a deal with President Putin during a high-stakes summit next Friday in Anchorage, Alaska. Ukraine President Volodymyr Zelenskyy says the country will never give up land, even if it means an end to the war.

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What the latest CPI data says about tariff impact

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