Is the consumer inflation due to #Trump 's tariffs underestimated? The CPI should be calculated using the out-of-pocket cost of consumer purchases including imported items. #Consumer imports is higher, not lower, than producer imports. Imported items being processed domestically can be classified as non-consumer imports. The #CPI assumes a basket with 10% imported goods. But total imports is 14% of #GDP. Either the CPI underestimates import inflation. Or companies are paying for the tariffs.