#CryptoCPIWatch

The market is nervously awaiting the release of the US CPI report today: Inflation is expected to feel the impact of tariffs, and the Fed is even less eager to cut interest rates.

The Consumer Price Index (CPI) report for April is expected to show that American consumers are beginning to feel the effects of the trade war initiated by President Donald Trump.

However, it may take several more months for the comprehensive effects of the new import tariff increases to become clear.

According to estimates from FactSet, the CPI for April is forecasted to rise by 0.3% compared to the previous month and increase by 2.3% compared to the same period last year. The core CPI (excluding food and energy prices) is also expected to rise by 0.3% for the month and increase by 2.8% year-on-year. Previously, the CPI for March fell slightly by 0.1%, marking the first recorded decrease since 2020, primarily due to falling energy prices.

Experts from Bank of America noted that tariffs may have contributed to some inflationary pressure in April. They simultaneously warned that inflation in the coming months will increase due to the impact of tariffs.

Inflation will rise, but the worst is yet to come.

Chief economist Vincent Reinhart of BNY Asset Management believes that the reason tariffs have not immediately reflected in the inflation index is due to the type of goods being taxed. Most tariffs are imposed on intermediate goods, which have not yet directly appeared in the household consumption basket.

However, the CPI report for April may be the first economic data to show the direct impact of the trade war.