April 2025 saw the U.S. inflation rate ease to 2.3%, marking its lowest level since February 2021.
The consumer price index (CPI) rose 0.2% for the month, aligning with expectations but slightly below the forecasted 2.4% annual rate.
Core CPI, which excludes volatile food and energy prices, also increased 0.2%, maintaining a 2.8% year-on-year rate.
Shelter costs, which make up a significant portion of the index, rose 0.3%, contributing to more than half of the overall inflation movement.
U.S. egg prices dropped 12.7%, though they remained 49.3% higher than a year ago.
The impact of Trump’s tariffs remains uncertain, with negotiations potentially influencing inflation trends in the coming months.
Court to judge on legality of ‘reciprocal’ tariffs
U.S. Court of International Trade is set to hear arguments in a case challenging President Donald Trump’s tariffs.
The lawsuit filed by five domestic businesses argues that the law Trump invoked to impose his ‘reciprocal’ tariffs does not actually give him the power he claims.
The Department of Justice maintains that that law ‘clearly’ authorises the president to impose tariffs.