The price of certain electronic elements and consumer goods, including furniture, computers, photographic and audio equipment, increased last month, but that had little effect on the general cost of goods. The main engine of inflation in April was linked to housing, representing more than half of the overall monthly increase.
“There is evidence of the modest data pass in April data, but it was a little less widespread than what I expected,” said Omair Sharif, the founder of Insights inflation, in a customer note.
The expectations of inflation had increased even before the major part of Trump prices did not take effect. Consumers are now planning to increase 3.2% over the next three years, New York Fed on Friday reported. It is the highest monthly reading since July 2022, around the period when post-payic inflation was at its peak.
New York Fed President John Williams, speaking at an economic conference in Reykjavik, Iceland, said in the weekend that the maintenance of inflation expectations is a “foundation” of the Central Bank.
“Maintaining well -established inflation expectations” is critical, said Williams, according to Bloomberg. This is particularly true “when uncertainty is very high.”
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