The U.S. Bureau of Labor Statistics announced on May 13, 2025, that April’s Consumer Price Index (CPI) rose 0.2% month-over-month, maintaining a 2.4% year-over-year rate.
Core CPI, excluding food and energy, increased 0.3% monthly, holding at 2.8% annually. These figures show inflation remains stable, challenging predictions of tariff-driven price spikes.
Shelter costs pushed inflation upward, while energy prices dropped, continuing a first-quarter decline. Food prices rose 0.4% monthly, adding pressure on households.
Despite new tariffs on Chinese imports, exemptions for electronics kept consumer prices steady.
Some economists predicted tariffs would lift inflation by 0.8–2.2 percentage points, but April data shows no such surge.
U.S. Inflation Stays Steady, Defying Tariff Fears
Consumer confidence dropped to 86, a five-year low, amid trade uncertainty. The Federal Reserve kept rates steady on May 7, eyeing tariff impacts.
Energy price declines and shelter cost moderation offset food price rises, keeping inflation near the Fed’s 2% target. No evidence of tariff-driven inflation appeared in April.
Critics of tariff warnings argue the economy absorbs trade policies without disruption as they did in Trumps first term. A 90-day U.S.-China tariff pause and exemptions softened impacts.
Stable inflation suggests businesses and consumers adapt, with no immediate price shocks. Markets expect 100 basis points of Fed rate cuts in 2025, supporting growth.
This report sticks to verified data, showing inflation’s stability despite tariff concerns. No fabricated figures or biased assumptions inflate risks.
The economy hums along, with gold, stocks, currencies, and Bitcoin reflecting confidence. Tariffs may not spark inflation as feared, proving skeptics wrong for now.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error