U.S. consumer prices increased modestly in April, marking the smallest annual rise in four years. The Labor Department reported a 0.2% increase in the Consumer Price Index (CPI), slightly below economists’ forecasts of 0.3%. This rebound followed a 0.1% dip in March, the first decline since May 2020. Shelter costs contributed significantly to the rise, while food prices slightly decreased, led by a sharp drop in egg prices. Gasoline prices remained stable, but natural gas and electricity costs rose. The annual inflation rate was 2.3%, down from 2.4% in March. Although tariffs remain a key factor, their full impact is yet to be seen, with economists expecting higher inflation later this year. The Federal Reserve maintained its benchmark interest rate at 4.25%-4.50%, indicating potential easing in September as trade tensions ease.
— new from Reuters
