If there are continuing fears over possible inflation following President Donald Trump’s imposition of wide-ranging tariffs last month, they aren’t showing up yet in the nation’s inflation rate.
Consumer prices rose 2.3% in April compared to last year, cooling slightly from the previous month. The reading — which is the lowest inflation rate since 2021 — matched economists’ expectations.
Egg prices fell 10% in April compared to the previous month, offering some relief for shoppers, data showed, according to a report from ABC News. Even with the drop, egg prices are still much higher than they were a year ago.
By contrast, gasoline prices dropped 12% over the past year. The nationwide average price of a gallon of gas is $3.15, according to data from AAA.
Many analysts anticipate a rekindling of inflation over the coming months as retailers begin to replenish inventory with goods imported after the tariffs took effect, according to the ABC report.
Experts say Trump’s recent rollback of some tariffs may soften the impact on inflation. After pausing many of the tariffs he originally announced April 2, Trump on Monday temporarily slashed tariffs on China from 145% to 30%.
Levies on China will remain at the reduced rate for 90 days while the two sides negotiate a wider trade agreement, a joint U.S.-China statement said on Monday. China also agreed to temporarily cut its tariffs on U.S. goods from 125% to 10%.
The rollback of levies on Chinese goods is expected to reduce the average cost of tariffs per household this year from $4,900 to $2,800, the Yale Budget Lab found.
Speaking last week before the rollback of tariffs on China, Federal Reserve Chair Jerome Powell said the economy remains in “solid shape” but warned Trump’s tariff policy could cause higher inflation and an economic slowdown.
“If the large increase in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation and a slowdown of economic growth,” Powell said then.
“All of these policies are evolving, however, and their effects on the economy remain highly uncertain,” he added.
