Inflation moderates to 2.3% year-over-year in April

Twelve-month inflation moderated in April to 2.3% due to a drop in fuel prices, the Labor Department reported Tuesday.

The data, slightly below analysts' expectations, covers the period when the Trump administration's tariffs on imports went into effect, including exorbitant tariffs on China, which have been eased in recent days, that rattled financial markets and raised fears of escalating prices.

Despite these fears, April's consumer price index (CPI) came in at 2.3%, slightly below the 2.4% annual rate recorded in March, the Labor Department reported in a statement.

This was the smallest price increase measured on a 12-month basis since February 2021.

Excluding volatile energy and food prices, underlying inflation was 2.8% on a 12-month basis, in line with market expectations.