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US Annual Inflation Rate Hits 2.3% in April, Lower Than Expected

  • The Labor Department reported on Tuesday that US consumer prices rose 2.3% year-over-year in April, the smallest increase in over four years.
  • This slowdown in inflation follows several months of cooling mainly due to declines in travel costs and grocery prices, despite some tariffs taking effect recently.
  • Core prices excluding food and energy rose 2.8% annually with monthly gains of 0.2%, while some companies like Mattel and Stanley Black & Decker raised prices to offset import duties.
  • Economists note average tariffs currently near 18%, the highest in 90 years, may raise prices by 1.7%, costing the average household about $2,800 in 2025 according to Yale Budget Lab.
  • Despite lower inflation in April, analysts and business owners expect prices to rise in coming months as tariff effects and policy changes gradually influence the economy.
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The Loadstar broke the news in on Monday, May 12, 2025.
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