The Bureau of Labor Statistics of the Department of Labor reported that the Consumer Price Index (CPI) in the United States has decreased to 2.3% in April, marking three consecutive months of declines.

The inflation rate was recorded at 2.8% in February and further decreased to 2.4% in March.

This decline follows a notable increase in inflation observed during the latter part of 2024 and the beginning of 2025, when the rates rose to 2.6% in October, 2.7% in November, 2.9% in December, and 3% in January.

The core index, which excludes volatile food and energy prices, remained unchanged at 2.8% in April.

This figure represents the lowest reading since March 2021.

On a monthly basis, the overall inflation rate was reported at 0.2%, following a decrease of one-tenth of a percentage point in March.

The core inflation rate also rose to 0.2%, after an increase of 0.1% in the previous month.

Housing costs rose by 0.3% in April, accounting for more than half of the monthly inflation increase.

The energy index saw a rise of 0.7% driven by higher prices in gas and electricity.

Conversely, food prices declined by 0.1%, attributed to a 0.4% drop in the household food basket, notably influenced by a 12.7% decrease in the cost of eggs.

The recent moderation in U.S. inflation has surprised analysts, who had predicted the overall rate to remain at 2.4%.

However, expectations for the core rate aligned with forecasted figures.

Concerns arose regarding inflation’s potential for resurgence, particularly as the U.S. began implementing new tariffs on imports in April.

Market analyst Javier Cabrera noted that it is typical for the impact of tariffs to materialize over time, especially considering a surge in imports leading up to the imposition of these duties.

Market participants, including analysts, investors, consumers, and the Federal Reserve, are now evaluating the implications of April's data and the ongoing 90-day trade truce between the United States and China.

Under the terms of the agreement, tariffs on Chinese imports to the U.S. were reduced from 145% to 30%, while tariffs on U.S. goods exported to China dropped from 125% to 10%.

Despite these reductions, analysts at Ostrum AM cautioned that a 30% tariff level is still significant for American consumers and businesses.

They contend it will likely impact inflation and economic activity dynamics, even as it alleviates recession risks.

Experts from Generali AM observe that the Federal Reserve faces downward risks to activity alongside upward pressures on inflation.

With a robust economy and significant uncertainty regarding stagflation, the Fed is not in a rush to cut interest rates.

Following the recent inflation data, the Federal Reserve left interest rates unchanged in the range between 4.25% and 4.5% for the third consecutive meeting, despite pressures from President Trump urging for lower rates.

During a press conference after the recent meeting, Fed Chair Jerome Powell articulated that members believe they can afford to 'wait and act when it is clear what is appropriate.' He emphasized there are currently no compelling reasons for immediate action.

Despite maintaining interest rates, Trump criticized Powell, referring to him as 'too slow.' He described the Fed chair as 'a fool' without a grasp of economic realities, while also expressing positive sentiments about Powell in the same commentary.