Yahoo Finance’s Josh Schafer reports:
April’s Consumer Price Index (CPI) is expected to show the first clear signs of inflationary impacts from President Trump’s tariffs.
The report, set for release at 8:30 a.m. ET on Tuesday, will greet investors less than 24 hours after markets soared on news the US and China have placed a 90-day pause on a wide swath of tariffs between the two countries.
“We expect the first signs of tariff related inflation to show up in the April CPI released on Tuesday,” UBS chief economist Jonathan Pingle wrote in a note to clients on Monday. …
In the CPI report, headline annual inflation is forecast to come in at 2.4% in April, flat from March’s increase. On a month-over-month basis, prices are estimated to rise 0.3%, above the 0.1% decline seen in March.
On a “core” basis, which strips out the more volatile food and energy costs, CPI is expected to have risen 2.8% over the past year in April, unchanged from the month prior when core inflation hit its lowest level in four years. Meanwhile, monthly core price increases are anticipated to rise 0.3%, ahead of March’s 0.1% rise.
While there will be signs of tariff-related inflation in Tuesday’s report, economists argue the full brunt of the new policies’ impact on inflation likely won’t be seen for several months.
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