March CPI Data May Indicate Core Inflation Low Point Amid Trade Challenges

According to Odaily, Wells Fargo economist Sarah House has commented on the upcoming March CPI data for the United States, suggesting it may appear somewhat delayed. However, it is expected to provide insights into how the evolving trade environment is beginning to impact prices. With tariffs accelerating price increases, March is likely to represent the low point for core inflation this year. Coupled with growing concerns over a self-induced economic recession in the U.S., this situation keeps the Federal Reserve in a 'wait-and-see' stance regarding interest rates. Although uncertainties remain about the duration of these tariffs, their transmission effects, and secondary price impacts, the trend is clear. The current trade policy presents new challenges for controlling inflation. For over a year, the final phase of the Federal Reserve's battle against inflation has been fraught with difficulties, highlighting the challenge of eliminating inflation without significantly weakening demand.