FX.co ★ US Inflation Rate Unexpectedly Slows to 2.3%, Lowest since 2021

The annual inflation rate in the United States decreased to 2.3% in April 2025, marking its lowest point since February 2021. This is a slight drop from the 2.4% rate recorded in March, and also falls below expectations of 2.4%. Energy costs experienced a notable decline of 3.7%, surpassing the 3.3% fall observed in March. Specifically, there was a sharper decrease in gasoline prices (-11.8% compared to -9.8%) and fuel oil (-9.6% compared to -7.6%), whereas natural gas prices saw a significant increase (15.7% compared to 9.4%). Inflation rates also eased for food (2.8% compared to 3%) and transportation (2.5% compared to 3.1%), while remaining stable for shelter (4% in both periods). Conversely, prices for used cars and trucks rose more swiftly (1.5% compared to 0.6%), as did prices for new vehicles (0.3% compared to 0%). Month-over-month, the Consumer Price Index (CPI) increased by 0.2%, recovering from a 0.1% decline in March, yet falling short of the predicted 0.3% increase. Shelter costs increased by 0.3%, contributing to more than half of the overall monthly rise in all items. Additionally, energy prices went up by 0.7%, with hikes in the natural gas and electricity indexes outweighing the drop in gasoline prices. Meanwhile, the annual core inflation rate remained steady at 2.8%, aligning with expectations.