US CPI Preview: Wells Fargo Expects Inflation to Rebound

According to a report by Jinse Finance, Wells Fargo stated that the US CPI data will further demonstrate that higher tariffs have driven up prices. The bank wrote: "We are still in the early stages of the price adjustment process, and it remains unclear how the higher import taxes will ultimately be distributed among end customers, domestic sellers, and foreign exporters. Meanwhile, growing consumer fatigue is making it increasingly difficult to raise prices overall." Looking ahead, Wells Fargo expects inflation to pick up in the second half of this year, but not significantly, with core CPI and the core PCE deflator returning to around 3% in the fourth quarter.