Surprising Decline In Inflation Despite Trump’s Price Pressure

By: cointribuneen|2025/05/14 03:30:06
0
Share
copy
American inflation defied all catastrophic predictions in April, dropping to 2.3% despite the implementation of massive tariffs by the Trump administration. This unexpected decline raises a troubling question: what if analysts had exaggerated the impact of protectionist measures? Could the fears of an inflationary spiral be overstated? American inflation declines despite Trump tariffs The U.S. Bureau of Labor Statistics released data on May 13 that embarrasses the doomsayers: American inflation slowed for the third consecutive month, falling from 2.4% in March to 2.3% in April. This decrease marks the smallest increase since February 2021 and paradoxically brings the U.S. economy closer to the 2% target set by the Federal Reserve, precisely when everyone predicted otherwise. The Consumer Price Index (CPI) rose only 0.2% in April compared to March, while economists, convinced of an immediate Trump effect, expected a 0.3% increase. Even more surprisingly, the core CPI, which excludes volatile components like food and energy, was also limited to a 0.2% increase, defying all predictions. However, this lull conceals contrasting sectoral trends. Food prices fell by 0.1%, a first since 2020, while energy rebounded by 0.7% after a 2.4% drop the previous month. Housing, a major component of the CPI, maintained a stable annual increase of 4%. Delayed but inevitable effects? Faced with these embarrassing figures, analysts are looking for explanations to save their alarming forecasts. In early April, the U.S. president had indeed set a benchmark rate of 10% on most imports, with duties of 145% on Chinese products and 25% on automobiles, steel, and aluminum. BeiChen Lin, senior strategist at Russell Investments, tries to justify the discrepancy: A convenient excuse echoed by UBS, which now pushes its catastrophic predictions to between May and October. In the meantime, trade negotiations are progressing. An agreement with China provides for a mutual reduction of tariffs by 115 points for 90 days, while an arrangement with the United Kingdom exempts certain strategic sectors, suggesting a more nuanced approach than the foretold apocalypse. JPMorgan also sounded the alarm, raising the probability of a global recession to 60%. The bank estimates these protectionist measures will cost American consumers $700 billion, equivalent to 2.4% of GDP. The American economy seems to resist the darkest predictions: inflation slowing against all odds and tariffs whose apocalyptic effects are still awaited. This lull may only be temporary, leaving markets anticipating the next decisions of the Fed and the evolution of international trade negotiations. Only the coming months will reveal whether this resilience endures or if the delayed impacts finally materialize.

You may also like

1 million investment yields over 1 billion return, Airwallex co-founder Liu Yueting reviews key life investments

At 25, all in with millions of dollars, at 34 worth 3 billion, Lucy Liu, co-founder of Airwallex, shares her ten-year wealth creation logic: betting on the right track, building a deep moat with licenses, and fully embracing AI intelligent finance by 2026.

Polymarket Millionaire Review: 40 addresses, 100,000 transactions, only three ways to make money

The differences between the three categories are not due to different parameters, but rather because they are playing completely different games.

Four Key Truths and Cost Traps Behind Polymarket LP Market Making Incentives

The potion left in the witch's hand is still poison; let's wait for Polymarket's major announcement tomorrow.

San Francisco Stablecoin Weekly Insights: The XYZ Coordinate System of 2026

Stablecoins 2026 New Narrative: No longer just "issuing coins," but reconstructing global financial infrastructure along three dimensions: AI payment authorization, RWA on-chain credit, and cross-border on-chain FX.

Asia's Next Great Dog Coin Debuts at the Weex AI Trading Hackathon

A BNB Chain meme token inspired by the Shih Tzu dog, blending community culture, creativity, and long‑term loyalty in Web3.

Fluxor: Connecting Global Builders With the WEEX AI Trading Hackathon

A hackathon platform connecting builders and creators to collaborative opportunities and innovation in Web3, enabling AI-oriented developers to experiment and create at scale.

The growth of AI-driven tools and community collaboration in Web3 has created new opportunities for developers worldwide. As a community partner and sponsor of the WEEX AI Trading Hackathon, Fluxor's mission to unify hackathon experiences and foster creative partnerships aligns with this spirit of collective innovation.

Popular coins

Latest Crypto News

Read more