While the data coincides with a temporary 90-day tariff freeze, the April print likely reflects pre-freeze conditions, giving policymakers a clearer view of baseline inflation absent policy distortion.
The monthly increase stood at 0.2%, easing from March’s 0.3% and slightly below forecasts. Core CPI, which strips out food and energy, also rose 0.2% on the month and held steady at 2.8% annually.
Energy prices fell 2.4%, contributing to the softer headline reading. Shelter and food prices posted modest gains, while medical care and transportation services showed limited movement.
The report arrives during a temporary 90-day tariff freeze, giving policymakers a narrow window to assess underlying inflation trends without imported price distortions.
Federal Reserve officials have kept rates steady since July 2023, citing a need for further evidence of inflation persistence.
The asset’s relative stability may reflect reduced sensitivity to macroeconomic releases or investor wait-and-see positioning ahead of the Federal Reserve’s June policy meeting.
