Inflation cooled to its lowest level in four years this April, offering Americans breathing room at the checkout line. According to the latest Consumer Price Index (CPI) report, overall prices rose 2.3% compared to a year ago, down slightly from March’s 2.4% increase. While still above the Federal Reserve’s 2% target, it marks a noticeable slowdown.
Price drops in groceries, used cars, and airfare drove the decline. Eggs led the pack with a steep 12.7% drop, thanks to relief from the recent bird flu disruptions. Meanwhile, breakfast staples like cereal, rice, and bacon also got cheaper, though restaurant prices continued their slow climb due to lingering labor costs.
This snapshot comes just as former President Trump’s new wave of tariffs began taking effect. While tariffs typically raise prices, their initial impact, paired with global economic jitters and paused import fees, has yet to ripple through fully. Some analysts, like Nationwide’s Ben Ayers, believe this might be a temporary low, warning that inflation could rebound this summer as businesses pass costs to consumers.
Core inflation, which strips out food and energy, held steady at 2.8%, also a four-year low. And while gas prices edged down again—averaging $3.14 a gallon—rent, medical services, and car insurance all continued modest climbs.
Tariff-related uncertainty remains. This month, the U.S. and China reached a temporary truce, easing some of the harshest import duties. However, experts caution that even a reduced average tariff rate of 13% (down from 24%) could still keep inflation elevated through the end of the year.
While prices are cooling for now, the full effect of tariff policies and global market shifts may still lie ahead.
