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

  • The U.S. Annual consumer inflation rate rose 2.3% in April 2025, marking the smallest increase in over four years according to the Labor Department.
  • This slowdown followed months of cooling prices that some attribute to partial effects of tariffs and lower costs in travel sectors like airfares and hotels.
  • Core prices excluding volatile food and energy climbed 2.8% year-over-year, unchanged from March, while monthly prices rose 0.2%, with increases seen in categories like baby strollers.
  • Several companies, including Mattel and Stanley Black & Decker, raised prices due to tariffs, though recent tariff reductions on Chinese imports aim to limit economic damage, with the average tariff now about 18%.
  • Economists forecast inflation may rise in coming months as the delayed impact of tariffs takes hold, suggesting ongoing challenges for consumers and the Federal Reserve’s inflation target of 2%.
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The Loadstar broke the news in on Monday, May 12, 2025.
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