BlockBeats News, May 12th, Fed Whisperer Nick Timiraos commented on the U.S. CPI data, stating that the optimistic view on inflation has been that the recent price increases were due to tariffs (which would be reflected in goods) and therefore this increase would not persist because tariffs would not keep rising year after year.

Just looking at the CPI data from April, this view does not hold. Housing prices increased by 0.6% (previously expected to rebound to compensate for the lower data during the U.S. government shutdown). However, core services prices excluding housing rose by 0.45%, marking the third-highest month-on-month increase since January 2025.

Looking at the past 12 months, the 3.3% year-on-year increase is the highest level since February 2025. Core goods prices rose by 0.03% that month (up 1.13% year-on-year).