U.S. Consumer Prices Rose Less Than Expected in April

Article originally posted on on May 15, 2025

The Consumer Price Index (CPI) for April rose 0.2% versus 0.3% consensus and -0.1% the prior month, according to the Bureau of Labor Statistics. On an annual basis, CPI printed at 2.3%. This was the slowest annual rate since early 2021, falling short of the consensus expectation that it would hold at 2.4%.

Core CPI printed at 0.2% compared with expectations of a 0.3% rise and +0.1% in March. Year-over-year, Core CPI rose 2.8% versus 2.8% consensus and +2.8% the prior month.

The core CPI measure saw monthly increases in household furnishings and operations, medical care, motor vehicle insurance, education, and personal care. Meanwhile, declines were recorded in airline fares, used cars and trucks, communication, and apparel, according to the BLS.

This CPI report marks the first to reflect the economic turbulence triggered by President Trump’s April 2 “Liberation Day” tariff announcements. However, recent agreements with the U.K. and China signal to investors that the White House is scaling back its most aggressive tariff threats.

As Goldman Sachs noted ahead of the inflation data, “today’s tariff de-escalation probably argues for reduced sensitivity to surprises in both directions because whatever we do learn about tariff-related inflation today lags the rapidly changing policy reality.”