Catenaa, Thursday, May 15, 2025-US inflation showed signs of slowing in April, as the annual consumer price index (CPI) rose 2.3%, marking its lowest rate since February 2021, the Labor Department said in a report on Tuesday (13).
The CPI, which tracks the cost of a wide range of goods and services, rose by a seasonally adjusted 0.2% in April, matching the consensus estimate.
However, the 12-month inflation rate was slightly below expectations, which had forecast a 2.4% rise. The core CPI, which excludes volatile food and energy prices, also saw a 0.2% increase for the month, bringing the year-over-year figure to 2.8%.
Shelter prices remained a major factor in driving inflation, contributing to over half of the overall increase. The housing category rose 0.3% in April, continuing its upward trend. Meanwhile, energy prices rebounded by 0.7%, reversing the 2.4% drop in March. Food prices dipped slightly by 0.1%.
Used vehicle prices fell 0.5%, marking a second consecutive monthly decline, while new vehicle prices remained stable. Other notable price changes included a drop in egg prices by 12.7%, though they remain up 49.3% year-over-year.
Economists predict that while the April CPI report was relatively tame, the impact of tariffs, particularly from the ongoing US-China trade negotiations, could drive inflation higher in the coming months.
The Federal Reserve is now less likely to implement interest rate cuts this year, with markets shifting expectations toward September.
