U.S. Inflation Slows to 2.3 Percent in April, Lowest Since 2021

U.S. inflation slowed to its lowest annual rate since February 2021, with the Consumer Price Index rising 2.3% year-over-year in April, slightly below economists' expectations. The monthly increase was 0.2%, driven largely by shelter costs, while food prices declined slightly, including a significant drop in egg prices. Energy prices rose modestly month-over-month but fell over the 12-month period, contributing to the easing inflation. Despite recent tariff policies introduced by the Trump administration, economists have not yet observed a significant impact on inflation, with tariff-related price increases expected to take more time to appear in data. Meanwhile, Atlanta experienced one of the smallest inflation increases among major U.S. cities, further highlighting the trend of slowing price hikes across the country. These developments have influenced market expectations for fewer Federal Reserve rate cuts this year, with a shift toward later and reduced easing.