US inflation gauge cools with little sign of tariff impact, so far

WASHINGTON AP A key U S inflation gauge slowed last month as President Donald Trump s tariffs have yet to noticeably push up prices while American incomes jumped Friday s assessment from the Commerce Department manifested that consumer prices rose just in April compared with a year earlier down from in March and the lowest since September Excluding the volatile food and potency categories core prices rose from a year earlier below the March figure of Economists track core prices because they typically provide a better read on where inflation is headed The figures show inflation is still declining from its post-pandemic spike which reached the highest level in four decades in July Economists and chosen business executives have warned that prices will likely head higher as Trump s widespread tariffs take effect though the timing and impact of those duties are now in doubt after they were struck down late Wednesday in court On a monthly basis overall prices and core prices both increses just from March to April At the same time incomes before adjusting for inflation rose a healthy Much of that gain reflected an increase in Social Shield benefits for particular retired teachers fire fighters and federal workers whose incomes previously weren t fully counted toward Social Prevention benefits The inflation-fighters at the Federal Reserve explained at their largest part current meeting May - that inflation is still elevated compared to their target of Fed authorities who focus more on core prices broadly encouragement keeping their key interest rate steady while they evaluate the impact of the tariffs on inflation and jobs Consumer spending rose in April from March the assessment declared but that s down from the big rise in March The court ruling last Wednesday noted that bulk of Trump s tariffs were unlawful including his duties on imports from Canada Mexico and China as well as those on more than other countries Tariffs on steel aluminum and cars were implemented under different laws and remain in place But the duties were allowed to remain in effect while the Trump administration appeals the ruling against them And administration administrators say they will find other legal government if needed to implement the tariffs As a impact what tariffs will end up in place and for how long remains highly uncertain Source