Inflation in the United States decreased to 2.3% in April from 2.4% in March, a result marginally better than analysts had anticipated.

This development may reinforce President Donald Trump's narrative regarding his tariff policies introduced last month, adding pressure on the Federal Reserve to consider interest rate cuts amid concerns over the implications of tariffs on prices and the labor market.

Economists have indicated that the current inflation figures could represent a brief respite before an expected rise in consumer prices, attributable to the ongoing trade war initiated by the Trump administration.

In April, consumer prices saw an increase of 0.2% compared to March, reversing a slight decline from the previous month.

Forecasts had predicted that year-over-year inflation would remain at 2.4%, consistent with March's figure.

The core inflation measure, which excludes the more volatile categories of food and energy, showed an annual increase of 2.8%, unchanged from March's report.

Although President Trump has rolled back nearly all reciprocal tariffs announced on April 2, placing them on hold until mid-July—and including a recent agreement with China on tariff reductions—analysts caution that the full impact of these trade taxes is yet to be felt, particularly as the Federal Reserve remains vigilant about potential price pressures.

In a recent announcement, a three-month truce with China is set to take effect on May 14, during which tariffs on imports from China to the U.S. will decrease from 145% to 30%, while tariffs on U.S. exports to China will lower from 125% to 10%.

The tariffs imposed by the current administration represent a significant escalation in protectionist policies aimed at addressing trade imbalances, with experts noting that while the effects may take time to manifest, early signs of rising prices and declining consumer confidence are already apparent.

Housing has emerged as a significant contributor to the cost increases, representing one-third of the consumer price index.

In April, housing costs increased by 0.3%, contributing to approximately half of the overall movement in prices.

This data contrasts sharply with President Trump's assertions that significant price reductions were occurring in various sectors.

For example, energy prices, which had decreased by 2.4% in March, rose by 0.7% in April, while food prices fell by 0.1%, deviating from the optimistic projections presented by the administration.

Despite claims that egg prices had seen an 80% decrease, government statistics indicate that eggs became cheaper by only 12.7% in April, yet remain 49.3% more expensive than a year ago, illustrating discrepancies in the administration's narrative regarding economic improvements.