Inflation rose last month to its highest level since February as President Donald Trump’s sweeping tariffs push up the cost of a range of goods, including furniture, clothing, and large appliances.

The hottest question in economics is why the massive price hikes tariffs were supposed to bring still haven’t materialized halfway through 2025.

The U.S. economy has defied dire predictions so far this year. Many economists see growth slowing – and tariff-driven inflation – but not a recession.