Falling Egg Prices Helps US Inflation Slow Down to 2.3% in April

US consumer price inflation in April came down to 2.3% on year-on-year (y-o-y) from 2.4% in March, 2025. Core inflation, which does not include the volatile food and energy prices, stood at 2.8% in April. This was at the same level as that in March. On month-on-month basis, inflation rose by 0.2% in April. It had fallen by 0.1% in March.

Decline in Egg Prices

Consumer price inflation in April came down because of the fall in food prices. Price of eggs came down by 12.4% in April, on month-on-month basis. This is the biggest decline in the price of eggs in the past 4 decades. The decline follows the soaring rise in their prices. Egg prices had increased year-on-year by 49.3% before this most recent decline. The price rise in eggs had pinched US people so much that it became an election issue in the 2024 US Presidential elections. Price of hotel rooms came down by 0.1%. Inflation in hotel prices has been running high post the Covid lockdowns. Price of furniture went up by 1% in the month. Gasoline prices came down by 0.1%.

Prices of in-store grocery products fell month-on-month by 0.4% in April. House rents increased by 0.3% over that in March. This was a major contributor to the month-on-month rise in inflation in April.

Data Source: US Bureau of Labor Statistics

Impact of higher tariffs 

The impact of higher tariffs imposed by US President Trump will be seen fully in the coming months. In April its effect was not seen because businesses had accumulated huge inventory before the implementation of higher tariffs. The impact was also not seen fully because most of the tariff increases have been postponed for a 90-day period.

US Federal Reserve kept its benchmark interest rate unchanged in its recent monetary policy meeting. It expects upward pressure on US inflation due to higher tariffs imposed by President Trump. There is huge consumption of imported goods in the American economy.

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. The content is based on highly reliable resources. Still if there is any error it is deeply regretted. Write to us for getting any error corrected.

Source: https://www.bls.gov/