U.S. Inflation Stays Cooler Than Expected, Prices Up 2.3%, Smallest Annual Increase Since February 2021

U.S. inflation edged up in April, less than forecast, defying predictions that tariffs would push prices up at a faster rate.

The consumer price index rose 0.2 compared with the previous month, the Department of Labor said Tuesday. Economists had forecast a 0.3 percent increase following a 0.1 percent decline in March.

Compared with a year ago, consumer prices are up 2.3 percent. That is the lowest inflation reading since February of 2021.

Core prices, a measure that excludes food and energy prices, rose 0.2 percent compared with March. Over the past 12 months, core prices are up 2.8 percent.

Economists had forecast core prices to rise 0.3 percent, up from 0.1 percent reported in March.

The April CPI report is the first since President Donald Trump announced tariff hikes on April 2’s Liberation Day. Some higher tariffs on China, however, have been in effect since February. Many economists had been expecting tariffs would push up consumer prices in April but the report indicates this has not happened.