The Consumer Price Index (CPI) report for April showed inflationary pressures easing on an annualized basis, in the first month since President Trump’s partial implementation of tariffs.
The latest data from the Bureau of Labor Statistics showed consumer prices rose 2.3% from a year earlier, down from 2.4% in March and below economists’ expectations of 2.4%. This was the slowest annual rate of increase since February 2021, before a surge in inflation prompted the Federal Reserve to begin a rate hike cycle.
On a monthly basis, prices rose 0.2%, lower than the 0.3% estimate. By comparison, prices fell 0.1% in March.
In terms of “core” prices, which exclude the more volatile food and energy, prices in April rose 0.2% from the previous month, up from 0.1% in March but still below expectations of 0.3%. On an annualized basis, core prices rose 2.8%, unchanged from the previous month and in line with market expectations.
The CPI report came less than 24 hours after markets surged on news that the US and China had agreed to suspend most tariffs for 90 days. The report also covered a period when Trump’s “Liberation Day” announcement of tariffs raised concerns among investors, businesses and consumers about potential price increases. However, a week later, Trump reversed course and announced a 90-day suspension of tariffs except for China, while maintaining the base 10% tariff on all other countries.
