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US Annual Inflation Rate Hits 2.3% in April, Lower Than Expected

  • The U.S. Annual inflation rate rose 2.3% in April 2025, marking the smallest increase in over four years according to the Labor Department.
  • This moderation follows a background of tariff implementations by the Trump administration, including 25% duties on steel, aluminum, and some imports, which have taken time to impact consumer prices.
  • Core prices excluding volatile food and energy increased 2.8% year-over-year and 0.2% monthly, with notable price declines in airfares, hotels, and groceries partially easing inflationary pressures.
  • Experts including Laura Rosner-Warburton said, "It's early days for tariff effects," while the Yale Budget Lab estimates tariffs will raise prices 1.7% and cost households about $2,800 this year.
  • Despite current cooling, economists and business owners expect inflation to rise by summer as more price increases linked to tariffs and other factors emerge, posing challenges for the Federal Reserve’s 2% inflation target.
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The Loadstar broke the news in on Monday, May 12, 2025.
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