May 13 (UPI) — Inflation rose slightly less than expected in April despite the arrival of President Donald Trump’s sweeping international tariffs early in the month, according to a Bureau of Labor Statistics report on Tuesday.
The consumer price index rose 0.2% in April and 2.3% on the year, while core CPI, which excludes volatile food and energy prices also rose 0.2% for the month and 2.8% on the year.
Dow Jones economists had forecast that all-items CPI would rise 0.2% for April and 2.8% on the year and that core CPI would increase 0.3% on the month and 2.8% annually.
The index for food fell 0.1% in April, while the energy index rose 0.7% and the shelter index climbed 0.3%.
The April drop in the rate of inflation was unexpected as it coincided with President Donald Trump’s establishment of tariffs on all of America’s trading partners.
“Good news on inflation, and we need it given inflation shocks from tariffs are on their way,” Navy Federal Credit Union corporate economist Robert Frick told CNBC. “Non-tariffed goods are still in the pipeline, and perhaps some importers have absorbed their tariff costs for now.”
It is unclear how the Trump tariffs, which have been altered and lowered since Trump announced the “Liberation Day” levies on April 2, will affect inflation during months to come, but it is expected that there will be an eventual impact, as Frick posted to X in April that “this is likely the calm before a CPI storm” especially due to the tariffs that Trump had levied against China. However, as those duties were mostly paused Monday to allow additional time for more in the way of economic and trade discussions, the impact remains to be seen.
