Nick Timiraos said the optimistic view that recent inflation firming is mainly
tariff-led, and therefore likely temporary, is challenged by April CPI data.
Housing rose 0.6%, in line with expectations after prior softness. However, core
services excluding housing increased 0.45% month-on-month, the third-highest
reading since January 2025, while the 12-month rate hit 3.3%, the highest since
February 2025. Core goods rose 0.03% on the month and 1.13% year-on-year.
