Inflation has picked up since President Donald Trump announced new import tariffs in April,with the latest consumer price index data showing outsized increases in tariff-sensitive categories,including coffee,toys and televisions.

Overall prices rose 2.9% in August from a year earlier, up from 2.7% in June and July, according to CPI data released Thursday. The CPI measures the cost of a broad basket of everyday goods and services, including groceries, rent and medical care.that leaves inflation drifting farther from the Federal Reserve’s target of 2%. Core inflation, which excludes volatile food and energy prices, rose 0.4% in August, the biggest monthly gain since January, and is up 3.1% from a year earlier.

Taken together, this means more pressure on everyday household spending.## How tariffs feed into inflation

Although trump’s sweeping tariffs were first announced in April, the effects have shown up unevenly since goods move through supply chains at different rates and imports make up a larger share for some products than others.

Even so, they still have a “significant impact on prices,” according to the Federal Reserve Bank of San Francisco.

Take bananas,for example. Prices climbed 4.9% from April through August – equivalent to an annualized pace of about 15% – a notable jump for a category that rarely sees much inflation. virtually all U.S.supply comes from central and South America and is now subject to a 10% tariff.

Bananas aren’t the only industry affected. The Fed’s Beige Book survey in august said all regions were seeing tariff-related price increases, spanning sectors from food and retail to manufacturing and health care, with many businesses reporting they’ve started to pass those costs on to consumers.

Americans now face an average tariff rate of 17.4% – the highest as 1935 – an increase estimated to cost households an extra $2,300 in 2025, according to the Yale Budget Lab. (These estimates include tariffs imposed under the International Emergency Economic Powers Act, which remain in place while the court challenge is pending).

To get a sense of where else inflation has been heading, hear’s a look at five of the moast-impacted products as April, compared with their historical norms for

Televisions

Television prices edged up 2.5% in August and are up 3.1% since April. While the increase might seem modest, television prices have been on a downward trajectory since the late 1990s. Manufacturing efficiencies and the rise of “smart” TVs that generate revenue from advertising and data collection have historically driven costs down. This recent uptick warrants a closer look.

The Long-Term Decline in TV Prices

For decades, consumers have benefited from steadily decreasing television prices. Several factors contributed to this trend:

• Manufacturing Advancements: Improvements in production techniques, notably in screen technology (like LCD and OLED), reduced manufacturing costs.
• Economies of Scale: As demand for televisions increased globally,manufacturers were able to produce them at a lower cost per unit.
• Competition: Intense competition among television manufacturers kept prices in check.
• Shift to Smart TVs: The introduction of smart TV functionality allowed manufacturers to explore new revenue streams beyond the initial hardware sale, such as advertising and subscription services.

Why Are Prices Now Increasing?

The recent increase in television prices is a complex issue with several contributing factors:

Supply Chain Disruptions

Global supply chain issues, which began during the COVID-19 pandemic, continue to impact the availability and cost of components needed to manufacture televisions. This includes:

• Semiconductor Shortages: A global shortage of semiconductors, essential components in all modern electronics, has driven up costs.
• Logistics Challenges: Increased shipping costs and port congestion add to the overall expense of getting televisions to market.
• Raw Material Costs: The price of raw materials used in television manufacturing,such as glass and plastics,has also increased.

Inflationary Pressures

Broad economic inflation is impacting the cost of everything, including televisions. Increased costs for labour, energy, and transportation are being passed on to consumers.

Panel Costs

The cost of LCD and OLED panels,the most expensive component of a television,has been rising. This is due to a combination of factors, including supply constraints and increased demand.

Reduced Promotional Activity

Manufacturers and retailers may be reducing promotional activity and discounts, contributing to higher sticker prices. This could be a strategic move to maintain profit margins in the face of rising costs.

What Does This Mean for Consumers?

Consumers can expect to pay more for televisions in the near future. The extent of the price increases will depend on how long supply chain disruptions persist and how inflation evolves. Here are some tips for consumers:

• Shop Around: Compare prices from different retailers.
• Consider Refurbished Options: Refurbished televisions can offer significant savings.
• Be Flexible with Features: Prioritize the features you need and avoid paying for unnecessary extras.
• Monitor Sales: Keep an eye out for sales and promotions.

Key Takeaways

• Television prices have historically declined due to manufacturing efficiencies and competition.
• Recent price increases are driven by supply chain disruptions, inflation, and rising panel costs.
• consumers should shop around and be flexible to find the best deals.