Fed's Mouthpiece: "Excellent" Inflation Report Conceals Two Major Concerns, Last Year's Low Base Effect Needs Caution

According to Jinshi reports, "Fed's mouthpiece" Nick Timiraos stated that today's "excellent" inflation report has two potential issues to watch out for:

• Analysts expect that with the implementation of "Liberation Day" tariffs, the increase in commodity prices will accelerate in May (especially in June).
• Given that inflation has already cooled by mid-2024, the year-on-year base itself is no longer advantageous (Note: The U.S. core PCE price index annual rate recorded 2.5% in April, the lowest since March 2021).