Inflation in the United States has slowed to its lowest rate in more than four years, according to the latest Consumer Price Index (CPI) data released by the Bureau of Labor Statistics on Tuesday (May 13). The annual inflation rate fell to 2.3% in April, down from 2.4% in March. This marks the lowest annual rate since February 2021, as reported by CNN.
The monthly CPI rose by 0.2%, which was slightly lower than economists’ expectations. Despite President Donald Trump‘s recent tariff hikes, which were anticipated to increase prices, the inflation rate remained subdued. The core CPI, which excludes food and energy prices, also rose by 0.2% and maintained an annual rate of 2.8%.
Consumers saw some relief in grocery prices, which fell by 0.4% from March. Egg prices notably dropped by 12.7% as the industry recovers from a bird flu outbreak. However, shelter prices increased by 0.3%, accounting for a significant portion of the overall inflation rate. Energy prices rebounded with a 0.7% increase, while gasoline prices saw a slight decline of 0.1%.
Despite the current slowdown, experts caution that the effects of tariffs could still lead to inflationary pressures in the coming months. The recent pause in tariffs on Chinese imports may temporarily ease inflation concerns, but the overall impact of tariffs could drive inflation higher later this year.
The Federal Reserve is expected to remain cautious, with economists predicting that interest rate cuts may be delayed until next year. The ongoing negotiations and potential tariff adjustments will continue to influence inflation trends and economic stability in the coming months.
Recent Comments