"Fed Whisperer": April CPI Data Dampens Optimistic View on 'Tariff Inflation Theory'

Odaily Odaily reports Nick Timiraos, the "Fed whisperer," commented on the US CPI data, stating that the optimistic narrative about inflation has been that the recent price increases were caused by tariffs (which would be reflected in goods), and therefore, such increases would not persist, as tariffs are not raised year after year. Looking solely at the April CPI data, this narrative does not hold up.

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