“We find ourselves at a point where the multiplicity of consequences for inflation related to recent solid economic growth, newly elected political officials and the resulting higher tariffs and higher levels of growth etc. are leading to an inflation. There is a big focus on Wednesday’s CPI report he said.

Rieder noted that the reading suggests that underlying data from the personal consumption expenditures price index “will see a monthly gain that exhibits significantly lower inflation than we’ve been used to in previous years,” he said, “but inflation will likely have a trajectory in the same direction.” “It eliminated much of the potential improvement in inflation for much of the goods economy and parts of the services sector.”