US CPI Outlook: Wells Fargo expects inflation to rebound

According to a report by Golden Finance, Wells Fargo stated that the US CPI data will further indicate that higher tariffs have pushed up prices. The bank wrote, "We are still in the early stages of the price adjustment process, and it is unclear how higher import taxes will ultimately be distributed among end customers, domestic sellers, and foreign exporters. At the same time, consumer fatigue is increasing, making it more difficult to raise prices overall." Looking ahead, Wells Fargo expects inflation to rebound in the second half of this year, but not significantly, and the core CPI and core PCE deflator will return to around 3% in the fourth quarter.