U.S. Consumer Prices Rose Less Than Expected in April

The Consumer Price Index (CPI) for April rose 0.2% versus 0.3% consensus and -0.1% the prior month, according to the Bureau of Labor Statistics. On an annual basis, CPI printed at 2.3%. This was the slowest annual rate since early 2021, falling short of the consensus expectation that it would hold at 2.4%.

Core CPI printed at 0.2% compared with expectations of a 0.3% rise and +0.1% in March. Year-over-year, Core CPI rose 2.8% versus 2.8% consensus and +2.8% the prior month.

The core CPI measure saw monthly increases in household furnishings and operations, medical care, motor vehicle insurance, education, and personal care. Meanwhile, declines were recorded in airline fares, used cars and trucks, communication, and apparel, according to the BLS.

This CPI report marks the first to reflect the economic turbulence triggered by President Trump’s April 2 “Liberation Day” tariff announcements. However, recent agreements with the U.K. and China signal to investors that the White House is scaling back its most aggressive tariff threats.

As Goldman Sachs noted ahead of the inflation data, “today’s tariff de-escalation probably argues for reduced sensitivity to surprises in both directions because whatever we do learn about tariff-related inflation today lags the rapidly changing policy reality.”

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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