Inflation rose in April, reversing March decline
Inflation picked up speed in April after declining in March, according to data released Tuesday by the Labor Department.
The consumer price index (CPI) rose 0.2 percent last month and is up 2.3 percent over the past year, according to the Labor Department. The annual inflation rate without volatile food or energy prices was 2.8 percent.
Prices fell 0.1 percent in March, though the annual inflation rate was slightly higher at 2.4 percent.
Economists expected price growth to pick up again amid deepening concerns about the impact of President Trump's trade agenda, though the April inflation report came in slightly below expectations.
'Today's CPI print suggests that the tariffs are yet to feed through to inflation. Yet, it is questionable whether or not today's CPI print really moves the needle after the rollercoaster ride of the past month,' wrote Seema Shah, chief global strategist at Principal Asset Management, in an analysis.
A wide range of business and consumer surveys conducted through April showed increasing fears of inflation as Trump's steep import taxes were set to take effect later that month.
Trump announced new tariffs on nearly all U.S. trading partners on April 2, with rates above 50 percent for some close allies. The president backtracked on that announcement days later amid a stock and bond market meltdown.
Trump refocused his trade war on China, jacking up the import tax rate on Chinese goods as high as 145 percent while dropping his new tariffs on other foreign goods to a baseline rate of 10 percent.
While Trump's tariff plans shook consumer confidence and raised concerns of higher prices, the whipsaw nature of his announcements and lags created by shipping times have yet to make a noticeable impact on inflation.
'The wide range of estimates coming into today's CPI report underscores the difficulty for market participants to size the significant uncertainty facing both corporations and consumers,' wrote Alexandra Wilson-Elizondo of Goldman Sachs Asset management in an analysis.
'The final CPI figure … is likely a welcome reprieve for the Fed,' she continued.
'However, the larger tariff-related price adjustments are likely to come over the next few months.'
Updated at 9:06 a.m. EDT.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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