The Globe and Mail reports in its Friday, July 25, edition that economists have warned that President Donald Trump's tariff push to Make America Great Again may lead to rising inflation. The Globe's Jason Kirby writes that recent data show U.S. inflation rose 2.7 per cent annually, with evidence that tariffs are driving prices higher for consumers. The Harvard Business School Pricing Lab tracks prices of over 300,000 products from four major U.S. retailers using real-time on-line data and artificial intelligence to identify their country of origin. Pricing Lab founder Alberto Cavallo said in normal times the pricing indexes would move lower over time because a lot of the products they track are household goods and electronics that get introduced at higher prices before being discounted. In that way, he said goods from Mexico are the only ones following the long-term pattern, with others "deviating from their normal downward trend, and increasing significantly in the case of Chinese goods." Commenting on the Harvard data, Corpay analyst Karl Schamotta warned that prices for made-in-China goods "are likely to climb further in the months ahead as front-running efforts run their course and inventories are wound down."
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