Inflation in the United States slowed for the third consecutive month in April, despite new rounds of import tariffs introduced by President Donald Trump. However, many economists believe this respite may be temporary, with price pressures likely to intensify over the coming months.Figures released by the US Labour Department on Tuesday show consumer prices rose 2.3% in April compared with the same period last year, down from 2.4% in March — the smallest annual increase in more than four years. On a monthly basis, prices edged up 0.2% after falling 0.1% in March, which had marked the first monthly decline in five years.
Food prices dipped, with grocery costs down 0.4%. A steep 12.7% fall in the price of eggs contributed to the drop, making it the sharpest fall in at-home food costs since September 2020. Prices for clothing slipped by 0.2%, while new car prices remained flat. Furniture was a notable exception, with a 1.5% price rise.
Also read: US to cut ‘de minimis’ tariff on China shipments to 54% from 120%President Trump’s tariffs — including a 10% universal duty imposed in early April and steep levies on steel, aluminium and Chinese imports — have yet to show their full effect on consumer prices. A significant reduction in US tariffs on Chinese goods, from 145% to 30%, was announced on Monday as part of a trade agreement between the two countries. Nonetheless, economists estimate the average US tariff now stands at 18%, about six times higher than before Trump took office.
Food prices dipped, with grocery costs down 0.4%. A steep 12.7% fall in the price of eggs contributed to the drop, making it the sharpest fall in at-home food costs since September 2020. Prices for clothing slipped by 0.2%, while new car prices remained flat. Furniture was a notable exception, with a 1.5% price rise.
Also read: US to cut ‘de minimis’ tariff on China shipments to 54% from 120%President Trump’s tariffs — including a 10% universal duty imposed in early April and steep levies on steel, aluminium and Chinese imports — have yet to show their full effect on consumer prices. A significant reduction in US tariffs on Chinese goods, from 145% to 30%, was announced on Monday as part of a trade agreement between the two countries. Nonetheless, economists estimate the average US tariff now stands at 18%, about six times higher than before Trump took office.
Items already in transit when the tariffs were announced are exempt from duties, and many businesses have stocked up in advance, allowing them to delay passing on the costs to consumers. That lag, however, is unlikely to last.
Tariffs on goods such as furniture, clothing, and agricultural products from Mexico may already be pushing up some prices. Car prices may also have risen as buyers rushed to dealerships to avoid potential hikes, giving dealers less reason to offer discounts.
Core inflation — which excludes food and energy — rose 2.8% year-on-year in April, matching March’s figure. On a monthly basis, core prices increased 0.3%, up from 0.1% the month before.
Also read: US to boost Saudi access to AI chips even as China issues linger
