April’s Consumer Price Index (CPI) report showed inflation pressures eased in the first month that many of President Trump’s tariffs were in effect.
The latest data from the Bureau of Labor Statistics showed that consumer prices increased 2.3% over the prior year in April, a slowdown from March’s 2.4% and below economists’ forecast for 2.4%. This marked the lowest annual increase since February 2021, before a large increase in inflation sparked a Federal Reserve interest rate hiking cycle.
On a month-over-month basis, prices increased 0.2%, above the 0.1% decrease seen in March but lower than the 0.3% estimated by economists.
On a “core” basis, which strips out the more volatile costs of food and gas, prices in April climbed 0.2% over the prior month, ahead of March’s 0.1% rise but below consensus projections for a 0.3% increase. Over the last year, core prices rose 2.8%, unchanged from the prior month and in line with Wall Street’s expectations.
The CPI report greets investors less than 24 hours after markets soared on news that the US and China have placed a 90-day pause on a wide swath of tariffs between the two countries.
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