News brief

Inflation rose at its slowest pace in more than four years. A decline in U.S. food prices helped offset a continued rise in housing costs. Prices only rose 2.3% in April compared with a year ago, below economists’ expectations. The core index, which excludes volatile food and energy prices, rose 2.8%, according to the Labor Department.

Normally, economists would cheer this cooling, but many don’t expect it to last. Tariff-related price increases are starting to kick in, boosting inflation. Even with Monday’s announcement of cuts in U.S. and Chinese tariffs, those duties remain historically high. And as President Trump pushes for tax cuts, the prospect of a widening federal deficit adds fuel to inflation expectations. – Staff