TTT - U.S. Core CPI Inflation: Firming Rents Weaker Core Goods Underlie Soft April Reading
Recent U.S. inflation reports, including the latest Consumer Price Index ((CPI)) release, lend support to Federal Reserve officials' statements that various factors unrelated to the business cycle have depressed inflation over the past several months, and that these factors should fade over time. Of note, shelter categories, which tend to be affected by economic slack, have firmed recently.
Moreover, the 15-percentage-point increase in tariffs just implemented across a range of Chinese imports should provide some support for prices on various retail goods over the next few months. However, the tariffs will also likely contribute