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

  • The U.S. Annual inflation rate fell to 2.3% in April 2025, marking the smallest increase in over four years according to the Labor Department.
  • This decline follows months of consumer price cooling despite some tariffs imposed by President Donald Trump taking effect, though economists predict inflation may rise again soon.
  • Several companies like Mattel and Stanley Black & Decker have raised or planned price increases to offset higher tariffs on imports, with tariffs averaging about 18%, the highest in nearly 90 years.
  • Key data includes a 0.2% monthly price rise from March to April, a 12.7% fall in egg prices, and a stable core inflation rate of 2.8% that excludes volatile food and energy prices.
  • The Federal Reserve faces challenges balancing inflation and unemployment risks due to tariffs, while businesses and economists remain uncertain about inflation's path amid ongoing tariff and policy changes.
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The Loadstar broke the news in on Monday, May 12, 2025.
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