The annual inflation rate was lower than experts expected in April, coming in at 2.3%, its lowest point since February 2021.
The Labor Department on Tuesday reported that the consumer price index rose a seasonally adjusted 0.2% in April, according to CNBC. While April’s 0.2% increase from the same month last year was a jump from the 0.1% year-over-year drop in March, the 2.3% inflation rate was just below the forecast of 2.4%, giving President Donald Trump some good economic news shortly after his “Liberation Day” tariffs went into effect. The White House celebrated the news in a post on X, crediting the “TRUMP EFFECT.”
“For the last several years, hardworking families have faced an affordability crisis. Finally, with @POTUS at the helm, Americans are breathing a sigh of relief — every dollar is going further and workers are able to keep more of their hard-earned paychecks!” Labor Secretary Lori Chavez-DeRemer added.
Food prices saw a slight decline of 0.1% from March to April, with the cost of eggs falling 12.7%. Used car prices were also down in April, while month-over-month energy prices increased 0.7%, shelter costs rose 0.3%, and new car prices remained the same, according to the consumer price index report. The year-over-year index for energy was down 3.7%, gasoline dropped 11.8% over the past 12 months, and the fuel oil index saw a 9.6% decline over that period. The index for electricity was up 3.6% over the last 12 months, and the natural gas index rose 15.7%, the report added.
The report comes as President Trump makes progress on a trade deal with China, providing some tariff relief. The Trump administration announced on Monday that it agreed to slash its reciprocal tariff on China to 10% for 90 days while the 20% fentanyl tariff remains in place. In return, China also dropped its retaliatory tariff on U.S. goods to 10%. Those reductions are set to go into effect on Wednesday as the two countries seek to continue negotiations.
Last week, Trump also struck a deal with the United Kingdom, giving the United States more access to the British economy and maintaining the tariff on U.K. imports at 10%. In return, the United Kingdom will be allowed to export up to 100,000 vehicles to the United States for a 10% tariff, a reduction of Trump’s 25% tariff on foreign auto imports.
Some economic experts predict that the brunt of Trump’s tariffs will not reflect in economic data until the summer, according to The New York Times and The Wall Street Journal.
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[[{“value”:”
The annual inflation rate was lower than experts expected in April, coming in at 2.3%, its lowest point since February 2021.
The Labor Department on Tuesday reported that the consumer price index rose a seasonally adjusted 0.2% in April, according to CNBC. While April’s 0.2% increase from the same month last year was a jump from the 0.1% year-over-year drop in March, the 2.3% inflation rate was just below the forecast of 2.4%, giving President Donald Trump some good economic news shortly after his “Liberation Day” tariffs went into effect. The White House celebrated the news in a post on X, crediting the “TRUMP EFFECT.”
“For the last several years, hardworking families have faced an affordability crisis. Finally, with @POTUS at the helm, Americans are breathing a sigh of relief — every dollar is going further and workers are able to keep more of their hard-earned paychecks!” Labor Secretary Lori Chavez-DeRemer added.
Food prices saw a slight decline of 0.1% from March to April, with the cost of eggs falling 12.7%. Used car prices were also down in April, while month-over-month energy prices increased 0.7%, shelter costs rose 0.3%, and new car prices remained the same, according to the consumer price index report. The year-over-year index for energy was down 3.7%, gasoline dropped 11.8% over the past 12 months, and the fuel oil index saw a 9.6% decline over that period. The index for electricity was up 3.6% over the last 12 months, and the natural gas index rose 15.7%, the report added.
The report comes as President Trump makes progress on a trade deal with China, providing some tariff relief. The Trump administration announced on Monday that it agreed to slash its reciprocal tariff on China to 10% for 90 days while the 20% fentanyl tariff remains in place. In return, China also dropped its retaliatory tariff on U.S. goods to 10%. Those reductions are set to go into effect on Wednesday as the two countries seek to continue negotiations.
Last week, Trump also struck a deal with the United Kingdom, giving the United States more access to the British economy and maintaining the tariff on U.K. imports at 10%. In return, the United Kingdom will be allowed to export up to 100,000 vehicles to the United States for a 10% tariff, a reduction of Trump’s 25% tariff on foreign auto imports.
Some economic experts predict that the brunt of Trump’s tariffs will not reflect in economic data until the summer, according to The New York Times and The Wall Street Journal.
“}]]
