US inflation shows modest easing in April, coming in below expectations

U.S. consumer inflation edged down to 2.3% year-on-year in April after new tariffs announced by President Donald Trump took effect, according to official data released Tuesday.

The Labor Department reported that the Consumer Price Index (CPI) rose slightly less than expected, easing from 2.4% in March, with consumer prices increasing 0.2% on a monthly basis, just below economists' forecasts.

The line chart illustrates U.S. annual inflation easing to its lowest level in four years as of April 2025, accessed on May 13, 2025. (Chart via bls.gov)

Smallest annual increase in the past 4 years

This was the smallest 12-month increase since February 2021 and was slightly lower than the median estimate from surveys of economists conducted by Dow Jones Newswires and The Wall Street Journal.

Excluding volatile food and energy costs, inflation increased 0.2% from a month earlier and by 2.8% over the past 12 months.

The monthly figure was slightly below expectations, while the annual figure was in line with forecasts.

May 13, 2025 04:23 PM GMT+03:00