US CPI/PPI - 2025-05-12

As we keep saying when it comes to tariffs, "wait and see." Goods are tariff-sensitive, and yet they were in outright deflation in April despite the onset of tariffs. Services are less tariff-sensitive, yet they came in slightly above the Fed's target. All told, headline CPI came almost exactly on-target. Whew!  Update: PPI final demand is in outright deflation for the second month in a row -- and this is just where tariffs were supposed to be showing up first and foremost!