Chair Powell’s comment that the Fed expects tariffs to feed through to inflation in June/July will focus even more market attention on incoming inflation.

Having correctly anticipated softer inflation prints in the past two-months, the pressure in import sensitive sectors alongside the spike in gas prices has seen the price level jump in the first twenty-three days of June, especially in the past week.

It is still too early to call what this means for core CPI, but the headline inflation trend looks less benign for now.