U.S. Inflation Data Challenges Optimistic Views on Tariff-Driven Price Increases

Nick Timiraos, often referred to as the 'Fed's mouthpiece,' commented on the U.S. Consumer Price Index (CPI) data. According to Odaily, he noted that the optimistic view on inflation has been that recent price increases are driven by tariffs, which would affect goods and thus not persist, as tariffs do not continuously elevate prices year after year. However, the CPI data from April does not support this view. Housing prices rose by 0.6%, which was expected to rebound to compensate for lower data during the government shutdown. Excluding housing, core service prices increased by 0.45%, marking the third-highest month-on-month rise since January 2025. Over a 12-month period, the 3.3% year-on-year increase is the highest since February 2025. Core goods prices rose by 0.03% for the month, with a year-on-year increase of 1.13%.