Inflation Numbers: April 2025 Shows a Small Dip

In April 2025, inflation in the U. S. took a small step back. The consumer price index, which tracks the cost of everyday items, went up by 0. 2%. This small increase put the yearly inflation rate at 2. 3%. This is the lowest it has been since February 2021. The Bureau of Labor Statistics shared this news. The monthly increase matched what experts had guessed. However, the yearly rate was a bit lower than expected. Economists had predicted 2. 4%. When looking at the numbers without the ups and downs of food and energy prices, the core CPI also rose by 0. 2% for the month. The yearly increase was 2. 8%, which was exactly what experts had forecasted. The monthly increase was a bit higher than in March. However, price increases are still far from their peak three years ago. Markets did not react much to this news. Stock futures were flat to slightly lower, and Treasury yields were mixed. This is because tariffs are starting to affect the economy. Tariffs are taxes on goods coming into the country. They can make prices go up. Some experts think that the full effect of these tariffs is yet to be seen. They believe that some companies might have absorbed the cost of tariffs for now. One big reason for the increase in the inflation gauge was shelter prices. Shelter includes things like rent and home costs. This category makes up about one-third of the index. In April, shelter prices went up by 0. 3%. This increase was more than half of the overall rise in the inflation gauge. This shows that housing costs are a big part of why prices are going up. It is important to note that inflation is a complex issue. It is affected by many factors. These include tariffs, housing costs, and the overall health of the economy. Understanding these factors can help people make better financial decisions. It can also help them prepare for changes in the economy.