Inflation rose by 2.3% in April, CPI report shows. Here’s what the data means.

The Consumer Price Index in April rose 2.3% on an annual basis, signaling that price hikes remain above the Federal Reserve’s goal of bringing down inflation to a 2% rate.

By the numbers

The CPI was forecast to rise 2.4% last month, according to economists polled by financial data firm FactSet. The CPI, a basket of goods and services typically bought by consumers, tracks the change in those prices over time. 

What experts say

Economists are looking for early signs that Mr. Trump’s tariffs are trickling through to American households. Because tariffs are import taxes paid by U.S. companies, which largely pass on the added costs to shoppers, they are at some point expected to boost consumer prices.

Earlier this month, Federal Reserve Chair Jerome Powell said the central bank is taking a wait-and-see approach on Mr. Trump’s tariffs, which he said could boost inflation and blunt economic growth. But so far, the tariff impact hasn’t shown up in economic data, which typically is backward-looking because it reflects activity from the previous month.

Mr. Trump has also announced tariffs, such as his April 2 “Liberation Day” levies, and then backed off from them. On April 9, he hit the pause button with a 90-day delay, scaling back the tariffs to a 10% rate. 

And on Monday, the Trump administration and China agreed to a temporary but significant easing of tariffs imposed over the last couple months, scaling back the import duties on Chinese-made goods from 145% to 30%.

Meanwhile, some consumers and businesses rushed to order goods ahead of the tariffs’ imposition, aiming to skirt the new import duties by front-loading their purchases. Because of this, the impact of the tariffs might not show up in economic data for another few months, economists say.

“[I]n reality, the data for April is likely to be largely unaffected by President Trump’s announcements on Liberation Day,” said Julien Lafargue, chief market strategist at Barclays Private Bank, in an email. “This is because exemptions were granted for goods that had left exporting countries before 2 April, and because consumers and businesses rushed to front-run tariffs in February and March.”

He added, “As such, both the Fed and global investors will still need to be a bit more patient before they can properly assess the impact of the trade uncertainty on consumer prices.”