"Fed Whisperer": April CPI Data Dashes Optimism on "Tariff Inflation" Theory

Odaily Odaily News "Fed Whisperer" Nick Timiraos commented on the US CPI data, stating that the optimistic narrative regarding inflation has been that the recent price increases were caused by tariffs (which would be reflected in goods), and therefore, this rise would not be sustainable, as tariffs would not continually increase year after year. Based solely on the April CPI data, this narrative does not hold up.

Housing prices rose by 0.6% (a rebound was previously expected to offset lower figures during the government shutdown). However, core services prices excluding housing rose by 0.45%, marking the third-highest month-on-month increase since January 2025. On a 12-month basis, the 3.3% year-on-year increase is the highest level since February 2025. Core goods prices rose by 0.03% for the month (up 1.13% year-on-year). (Jin Shi)