U.S. consumer prices rebounded moderately in April as declining food costs partially offset rising rents, leading to the smallest annual increase in four years, but the inflation outlook remains unclear against the backdrop of tariffs.

US inflation slowed to its lowest rate in more than four years, an unexpected and welcome development at a time when President Donald Trump’s dramatically escalated tariffs are expected to cause prices to rise.

Prices rose more slowly in April, marking another month of cooling inflation. Consumer prices rose just 0.2% from March, and they are up 2.3% from a year ago. That's the lowest annual increase since February 2021.