In April, the inflation rate fell to 2.1%lower than expected

In April, inflation barely brought a shift when Donald Trump’s tariff president realized at the beginning of the month, did not yet appear in consumer prices, the commercial department reports on Friday.

The price index for personal consumption, the main measure of inflation of the federal reserve system, increased by only 0.1% per month, which put an annual inflation rate of 2.1%, lowest in 205. The monthly reading corresponded to the Dow Jones consensus forecast, while the annual level was 0.1 percent below.

With the exception of food and energy, the main reading, which seeks to get even more attention to the Fed, showed indications of 0.1% and 2.5%, compared to the corresponding estimates of 0.1% and 2.6%. Central Bank representatives believe that Core is the best indicator of long -term trends.

However, consumer costs slowed down in a month, placing only 0.2%, according to consensus, but slower than 0.7% in March. A more cautious consumer mood was also reflected in the old personnel, which jumped up to 4.9%, which is from 0.6 percentage points in March to the highest level in almost a year.

Personal income increased by 0.8%, which is a slight increase compared to the previous month, but significantly ahead of the forecast by 0.3%.

Food prices decreased by 0.3% per month, while energy and services increased by 0.5%. The cost of shelter, which was one of the most stubborn inflation components, increased by 0.4%.

Markets demonstrated little reaction Before the news, the stock futures continue to show below and the Treasury is mixed.

Trump pushes the Fed to reduce its key interest rate as inflation continued to seek back to the target of the Central Bank. However, politicians decide to move when they expect long -term consequences of the president’s trade policy.

“The much greater increase in inflation of the basic goods is probably emerged as the costs for new tariffs are ultimately transmitted,” wrote Oliver Allen, senior economist Pantheon Macroeconomics “respectively, we still believe that the main inflation of PCE will be the peak at the end of this year.

Thursday Chairman Trump and Fed Jerome Powell held the first meeting face to face Ever since the president has started his second term. However, the Fed said that the future path of monetary policy was not discussed and emphasized that decisions will be made without political reasons.

Trump has advanced 10% of the US imports, some of the efforts to identify a trading landscape, in which in March the US held a record of $ 140.5 billion. In addition to total tariffs, Trump has launched selective mutual tariffs, much higher than 10% of the total.

However, since then, Trump has abandoned more serious tariffs in favor of the 90th day of talks with the affected countries. Earlier this week the International Court hit the tariffsSpeaking, Trump exceeded his powers and did not prove that national security threatens trade issues.

Then in the last batch of drama, The Court of Appeal allowed The White House’s efforts to temporarily reside from the US International Trade.

Economists are worried that tariffs can cause another round of inflation, although the historical record shows that their impact is often minimal.

At the beginning of this month, their political meeting also expressed concern about potential inflation, especially at a time when problems are increasing about the labor market. Higher prices and slower economic growth can bring stagflation, a phenomenon that the US has not seen since the early 1980s.