Wells Fargo Warns of 0.2% April CPI Rise Due to Tariffs

Economists at Wells Fargo have expressed concerns about the potential acceleration of consumer price increases in the United States for April. They anticipate that the monthly rate of the Consumer Price Index (CPI) could rise by 0.2%, following an unexpected decline of 0.1% in March. This forecast comes as tariffs are becoming a reality, which economists believe will drive up import costs and subsequently impact consumer prices.

According to the analysts, this increase would bring the CPI annual rate down to a four-year low of 2.3%. However, the core CPI annual rate is expected to remain unchanged at 2.8%. The economists at Wells Fargo stated that the impact of higher import costs on consumer prices is inevitable, although the exact timing remains uncertain.

This analysis underscores the growing concern among market institutions about the potential for higher inflation due to tariffs. As tariffs continue to be implemented, the cost of imports is likely to rise, which in turn could lead to increased consumer prices. This scenario highlights the need for businesses and consumers to prepare for potential price increases in the coming months.