Now We Know Who’s Paying the Tariffs

 https://www.wsj.com/opinion/now-we-know-whos-paying-the-tariffs-081f461d?mod=hp_opin_pos_1

Producer prices surge, and real wages still aren’t rising fast enough.

President Trump knows the public is skeptical about his tariffs, which is why Administration officials are anxious to convince voters someone somewhere else in the world will pay for them instead of American households. Inflation data released Thursday tell a different story.

The producer-price index (PPI) in July rose 0.9% in the month and 3.3% over the last year. Consumer-price data released Tuesday (0.2% monthly and 2.7% for the last 12 months) implied households weren’t experiencing tariff-induced price increases, except in some services such as medical care. The PPI numbers tell us this is partly because companies are paying higher prices but haven’t passed them on to customers—yet.