The consumer price index (CPI), which is the measure of the cost of most goods and services, rose 0.2% for the month|Dough4872|CC BY-SA 4.0

Inflation hit 2.3% in April, its lowest since February 2021 and slightly below the expected 2.4%, says the Labor Department.

The consumer price index (CPI), which is the measure of the cost of most goods and services, rose a seasonally adjusted 0.2% for the month. Core CPI (excluding food and energy) also increased 0.2% in April.

Shelter costs, making up one-third of the CPI, climbed 0.3% and accounted for over half the total increase. Energy prices rose 0.7%, while food prices slipped 0.1%. Egg prices tumbled 12.7% in April but remain 49.3% higher than a year ago.

Used car prices fell 0.5%, apparel dropped 0.2%, and health insurance rose 0.4%.

Despite easing inflation, economists warn that President Donald Trump’s 10% duties on imports and reciprocal tariffs could drive prices up later this year, as the current rate doesn’t show the full effect of tariffs. The 90-day pause on China tariffs has softened outlooks.

Markets now expect the first Fed rate cut in September.