According to reports from Jin Shi Data, the core CPI in the US has risen below expectations for the fifth consecutive month due to the decline in car prices. Categories such as toys, furniture, home appliances, and clothing have shown strong price performance, indicating that companies are passing higher import costs onto consumers.
Meanwhile, the prices of new and used cars have dropped. The lower-than-expected core CPI raises questions about the impact of Trump's tariffs. Some companies are protecting consumers from the impact by hoarding inventory or reducing profit margins.
This data may prompt Trump to more strongly call for the Federal Reserve to cut interest rates. Although some officials are willing to lower rates at the meeting in two weeks, there remain differences in policymakers' views on the impact of tariffs, and rates may be kept unchanged.
