The latest U.S. inflation report and what it says about the economy under Trump tariffs

Consumer prices climbed last month at the slowest pace since February 2021, as the inflationary effects of President Donald Trump's tariffs had yet to hit Americans' wallets.

Consumer prices climbed last month at the slowest pace since February 2021, as the inflationary effects of President Donald Trump's tariffs had yet to hit Americans' wallets.

The Consumer Price Index, which tracks a variety of costs throughout the economy, rose 2.3% year on year in April, the Bureau of Labor Statistics reported Tuesday, down from 2.4% in March.

Analysts said the slower price growth may still not prompt the Federal Reserve, which is tasked with managing inflation, from lowering interest rates. Trump has repeatedly called for the central bank to do so, bashing its decision last week to hold rates steady.

The latest inflation reading is "likely a welcome reprieve for the Fed; however, the larger tariff-related price adjustments are likely to come over the next few months," Goldman Sachs analysts said in a note to clients Tuesday. "Consequently, we still anticipate them remaining on the sidelines in the near term."

Even as the pace of price growth has slowed, consumers now report unprecedented levels of uncertainty amid fast-changing headlines about how Trump’s tariffs will affect the economy.