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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, the smallest increase in over four years, according to the Labor Department.
  • This cooling inflation follows months of consumer price easing despite President Trump's tariff hikes on imports, which raised average tariffs to about 18%.
  • Several companies including Stanley Black & Decker and Mattel have raised prices or plan to, citing higher tariffs on Chinese-made goods among the causes.
  • The Yale Budget Lab estimates tariffs added 1.7% to prices and will cost the average household roughly $2,800, while Fed Chair Powell noted tariffs raise risks of both higher inflation and unemployment.
  • Economists and business leaders expect inflation to rise in coming months as tariff effects spread, suggesting continued economic challenges despite recent price relief.
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The Loadstar broke the news in on Monday, May 12, 2025.
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