Consumer prices rise at slowest annual pace since February 2021

Yahoo

13-05-2025

April's Consumer Price Index (CPI) report showed inflation pressures eased on an annual basis 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%, lower than the 0.3% estimated by economists. Prices fell 0.1% on a monthly basis in March by comparison. A 0.3% rise in the index for shelter accounted for more than half of the all items increase, per the BLS.
"Today's CPI print suggests that the tariffs are yet to feed through to inflation," Principal Asset Management chief global strategist Seema Shah wrote in a note following the release.
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.
Read more: What Trump's tariffs mean for the economy and your wallet
The report covers the month in which President Trump's "Liberation Day" tariff announcement prompted concern among investors, businesses, and consumers over higher prices for goods. Trump quickly pivoted a week after the initial move, announcing a 90-day pause on the tariffs for all countries except for China. He kept baseline 10% duties in place for all countries.
"It is questionable whether or not today's CPI print really moves the needle after the rollercoaster ride of the past month," Shah wrote. "After all, not only is the April CPI report unlikely to have fully captured the tariff impact post-Liberation Day, but inflation numbers will now be further whipsawed by the US/China trade truce announcement."
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Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.