WASHINGTON (AP) — Inflation cooled for the third straight month in April even after some of President Donald Trump’s tariffs took effect, though economists and many business owners expect inflation ...

Core PCE inflation, which is the Federal Reserve’s favored measure of price changes as it excludes more volatile food and energy categories, was 2.5% in April, lower than projections of 2.6%.

Dr Liliana Danila, Lead Economist, The Food and Drink Federation, (FDF) said:“Food and drink inflation shot up in May 2025, reaching 4.4% compared to 3.4% in April.

In the 12 months through April, core inflation rose 2.5%. That was the smallest advance since March 2021 and followed a 2.7% increase in March.

The Personal Consumption Expenditures price index for April rose 2.1% on an annual basis, closer to the Fed’s target inflation rate of 2%.

Inflation fell two-tenths of a percentage point to 2.1% for the year ending in April, the Bureau of Labor Statistics reported Friday in an update to the Federal Reserve’s preferred gauge.

The Federal Reserve's preferred inflation gauge showed that price growth eased slightly in April, trending closer to the central bank's target as economists warn the impact of tariffs could push ...

Key Takeaways: U.S. inflation fell to 2.1% in April, the lowest since September. Core inflation hit a four-year low at 2.5% year-over-year. Consumer spending growth slowed amid tariff uncertainty.

Economists expect that core inflation, which excludes volatile food and energy prices, was 0.12% on a monthly basis in April and 2.5% on an annual basis. “We’re expecting a pretty soft number ...

Friday's report on inflation, income, and spending by the Bureau of Economic Analysis will likely show consumer prices rose 2.2% over the last 12 months ending in April, according to a survey of ...

The Fed has generally overshot its inflation target over the last four years. Headline PCEPI has averaged 4.0 percent per year since April 2020, whereas core PCEPI has averaged 3.9 percent.