US EditionUS inflation rate slipped to 2.1% in April, lower than expected, Fed’s preferred gauge shows
- The U.S. Commerce Department reported that consumer prices rose 2.1% year-over-year in April 2025, the lowest since September 2024.
- This slowdown follows previous months of easing inflation as core prices rose 2.5%, below March's 2.7%, reflecting continued price moderation.
- Personal incomes increased 0.8% in April, partly due to higher Social Security benefits, while spending rose 0.2%, indicating steady consumer activity.
- Federal Reserve Chair Jerome Powell announced a “new phase” in policy, signaling slower rate cuts and raising 2025 inflation projections to 2.5% amid elevated price pressures.
- The data and Fed stance suggest inflation remains above target while consumer resilience continues, supporting a cautious monetary policy approach going forward.
60 Articles
60 Articles
WASHINGTON (AP) — A key indicator of inflation in the U.S. slowed down last month because President Donald Trump’s tariffs still don’t raise prices noticeably, while U.S. revenue...
U.S. Inflation Slows to 2.1% Despite New Tariffs
The US Department of Commerce reports inflation fell to 2.1% in April 2025, down from 2.3% in March. Analysts forecasted 2.2%, but the Personal Consumption Expenditures (PCE) index dropped more than expected. Media predictions of tariff-driven price surges prove inaccurate so far. Core PCE, excluding food and energy, rose 2.5%, below the expected 2.6%. Monthly […]
By Alicia Wallace, CNN US consumers moderated their spending in April after a tariff-fueled buying spree the previous month, according to new data released Friday, which also showed a slowdown in inflation. Friday's Commerce Department report showed consumer spending rose 0.2% last month, a smaller-than-expected figure but a notable pullback from the 0.7% increase in March, as Americans moved up purchases—particularly for new cars—in anticipatio…
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