Consumer Inflation In US Eases In April As Food Prices Fall

US consumer inflation showed signs of softening in April, as a decline in food costs helped blunt the impact of rising housing expenses. According to data released by the Labour Department on Tuesday, the Consumer Price Index (CPI) edged up 0.2 per cent last month, rebounding slightly from March's 0.1 per cent decline—the first monthly drop since May 2020. The annual CPI increase slowed to 2.3 per cent, marking the lowest rate since February 2021.

The easing of inflationary pressure occurred ahead of any significant impact from President Donald Trump’s sweeping tariffs, which economists believe could start influencing prices more noticeably by mid-year. “Improvements in global trade will provide some clarity on the future path of inflation,” said Jeffrey Roach, chief economist at LPL Financial. “However, the uncertainty about what might happen after these temporary trade deals makes things difficult for the Fed since stagflation remains a risk. If the fog does not clear, the Fed might not be able to adjust policy in June.”

April’s inflation figures also came just days after the US and China agreed to a 90-day truce in their ongoing trade dispute. Although the truce reduces tariffs temporarily, a general 10 per cent import duty and several sector-specific tariffs remain in effect.