Inflation cools in April — but tariffs could upend the picture in coming months

Inflation eased last month as shoppers got a break at both the grocery store and the gas station.

Cost of living figures released by the Labor Department on Tuesday show consumer prices in April were up 2.3% from a year ago. That’s the smallest annual increase since February of 2021.

Prices rose 0.2% between March and April, after a modest decline the previous month. Housing costs accounted for much of the monthly increase, while prices for natural gas, electricity and auto insurance also rose in April.

Despite the muted price hikes last month, uncertainty remains about the outlook. So far, the trade war that ramped up at the beginning of April has had only a limited effect on retail prices, but analysts say higher tariffs may become more visible in future months.

An early sign of that was furniture costs, which rose 1.5% in April.

Inflation was kept in check last month by a decline in both gasoline and grocery prices.

Egg prices, which have been a poster child for the high cost of living, plunged 12.7% in April, as farmers got a seasonal reprieve from a lengthy battle with avian flu. Egg prices are still 49.3% higher than they were a year ago.

Stripping out volatile food and energy prices, “core” inflation was 2.8% in April — unchanged from the previous month.