Annual inflation rate hit 2.3% in April, less than expected and lowest since 2021
Source: CNBC
Published Tue, May 13 2025 8:31 AM EDT | Updated 9 Min Ago
Inflation was slightly lower than expected in April as President Donald Trumps tariffs just began hitting the slowing U.S. economy, according to a Labor Department report Tuesday.
The consumer price index, which measures the costs for a broad range of goods and services, rose a seasonally adjusted 0.2% for the month, putting the 12-month inflation rate at 2.3%, its lowest since February 2021, the Bureau of Labor Statistics said. The monthly reading was in line with the Dow Jones consensus estimate while the 12-month was a bit below the forecast for 2.4%.
Excluding volatile food and energy prices, core CPI also increased 0.2% for the month, while the year-over-year level was 2.8%. The forecast was for 0.3% and 2.8% respectively.
The monthly readings were a bit higher than in March though price increases remain well off their highs of three years ago
Read more: https://www.cnbc.com/2025/05/13/cpi-inflation-april-2025.html
From the source -
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CPI for all items rises 0.2% in April; shelter up https://bls.gov/news.release/cpi.nr0.htm
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8:31 AM · May 13, 2025
Article updated.
Previous article/headline -
Published Tue, May 13 2025 8:31 AM EDT | Updated 1 Min Ago
Inflation was slightly lower than expected in April as President Donald Trump's tariffs just began hitting the slowing U.S. economy, according to a Labor Department report Tuesday.
The consumer price index, which measures the costs for a broad range of goods and services, rose 0.2% for the month, putting the 12-month inflation rate at 2.3%, the Bureau of Labor Statistics said. The monthly reading was in line with the Dow Jones consensus estimate and slightly below the annual forecast for 2.4%.
Excluding volatile food and energy prices, core CPI also increased 0.2% for the month, while the year-over-year level was 2.8%. The forecast was for 0.3% and 2.8% respectively.
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Original article -
The consumer price index was expected to increase 0.2% in April for a 2.4% annual inflation rate, according to the Dow Jones consensus estimate.
This is breaking news. Please refresh for updates.

gab13by13
(28,255 posts)Sorry but like the boy who cried wolf, after time, people just won't believe you.
groundloop
(12,946 posts)mahatmakanejeeves
(64,740 posts)I can just see Jack Webb standing at a lectern reading the report to assembled financial reporters.
Bengus81
(8,839 posts)But the prices you pay at the store and other places are baked in and are NOT going down.
Self Esteem
(2,176 posts)Trump has made enough concessions that we're looking at a very real possibility that nothing actually happens.
Democrats maybe overplayed their hand by pushing the narrative of a modern great depression in response to the tariffs and... it's possible the economy continues to just chug along.
Bengus81
(8,839 posts)Self Esteem
(2,176 posts)When do we start feeling the ramifications of the tariffs?
I think there's likely to be some economic pullback but it's not going to be as severe as so many people told us and if the US doesn't fall into a recession, the narrative is probably not going to be favorable for the Democrats. They'll be seen as alarmist who predicted a great depression...
Skittles
(164,451 posts)repukes do not CARE if we have to pay more or if we don't have healthcare - THEY DON'T CARE - Dems need to make sure EVERYONE sees the freaking obvious
mwmisses4289
(1,115 posts)For real people who actually work for a living that means... what? Things cost another another couple of bucks more? On top of what what the tariffs are adding to the price of stuff?
Great job, repukes.
mdbl
(6,531 posts)HereForTheParty
(915 posts)Given lead times?
twodogsbarking
(13,767 posts)Self Esteem
(2,176 posts)Just look at your budget over the last few months and see if things are way more expensive, somewhat more expensive, the same or cheaper than previous months.
twodogsbarking
(13,767 posts)
littlemissmartypants
(27,756 posts)All numbers coming from the regime will be suss from now until.
mathematic
(1,567 posts)It's not straightfoward if the tariffs will reduce inflation due to this disinflationary effect or increase inflation due to reducing productivity (from taxing more efficiently made foreign goods). Or if short term effects like the price shock raises inflation expectations (which feed into realized higher inflation).
There is a lot of second-rate economic analysis that has gone on with respect to the tariffs. The only thing you can say for certain is that we will be poorer than otherwise if none of this tariff policy existed in the first place. Neither recession nor increased inflation are guaranteed.
Also, we are not in a recession right now. Q1 GDP will almost certainly be revised upwards as better measurement of Q1 business inventories and Q1 consumption come in.
progree
(11,941 posts)News report from the source: https://www.bls.gov/news.release/cpi.nr0.htm
CPI data series: https://data.bls.gov/timeseries/CUSR0000SA0
CORE CPI data series: http://data.bls.gov/timeseries/CUSR0000SA0L1E
I annualize everything to be comparable to each other and to compare to the Fed's 2% target
They are calculated using the actual index values, not from the rounded off monthly change numbers.
The CPI rise averaged 1.6% over the past 3 months on an annualized basis (core CPI: 2.1%)
The April one month increase annualized is: CPI: 2.7%, (core CPI: 2.9%)
REGULAR CPI
CORE CPI
Both the CPI and Core CPI 3 month rolling average were helped a lot when the huge January increases dropped out of the 3-month window.
The rolling 12 months averages graphs are in the OP. They were helped by last year's big April 2024 month-over-month increases dropping out of the 12 month window. What drops out of the window is just as important as what enters the 12 month window (which is the latest).
Next month, the rolling 12 month average will not be helped by the "drop out" effect because May 2024 month-over-month increases that are dropping out of the 12 month windows are small: just 0.5% ANNUALIZED for the CPI, and 1.7% ANNUALIZED for the core CPI.
rsdsharp
(10,835 posts)Just this morning I heard Donnie Dumbass tell the Saudis that the US has NO inflation.
He wouldnt lie. Would he?
progree
(11,941 posts)"No Inflation, and Prices of Gasoline, Energy, Groceries, and practically everything else, are DOWN!!! THE FED must lower the RATE, like Europe and China have done," Trump said on Truth Social.
"What is wrong with Too Late Powell? Not fair to America, which is ready to blossom? Just let it all happen, it will be a beautiful thing!," Trump added, repeating criticism of Fed Chairman Jerome Powell.
Short article, no more at link.
Not true - see graphs in #15 and OP above. Prices overall were up 0.2% from March to April.
One can see the components month-by-month increases and annual increase in the Table A at https://www.bls.gov/news.release/cpi.nr0.htm
Gasoline declined 0.1% but energy overall is up 0.7% in April. It's true that groceries are down 0.4% (after a 0% increase in February and a 0.5% increase in March). Food away from home is up 0.4% each month for the past 3 months.
"Practically everything else" is up.
And BTW, Mr. President, Powell doesn't make the rate decisions. It's made by a vote of the FOMC (Federal Open Market Committee) of which Powell is one of twelve votes.
totodeinhere
(13,616 posts)can be attributed to Biden Administration policies. What Trump is doing now with his brain-dead economic policies and tariffs will surely tank our economy and cause inflation to rise again in time. And then when the pukes are booted out of power as will surely happen after the next elections it will take the Democrats time to undo the damage.