Producer Price Index, a measure of wholesale costs, fell 0.5% in April. Margins are squeezed by tariffs and firms will likely pass costs to consumers

The Consumer Price Index (CPI) was 2.3% higher than a year ago, the Bureau of Labor Statistics said Tuesday, below the economists’ expectations of 2.4% and the previous reading. The monthly gain was 0.

Because it's based on third-quarter inflation, it's impossible to predict the 2026 COLA with any degree of accuracy. Because of the ongoing tariff back-and-forth, as well as a generally slowing U.S. economy, the inflation rate on the back end of the year is more uncertain than it usually is.

Prices for other foods declined in April. Inflation in the fresh fruits and vegetables group dropped by 0.7%, with lettuce and tomato prices both down by over 6%. Dried beans, peas and lentils, however, were up by nearly 6%, underscoring the volatile nature of food prices.

The latest consumer-price index is expected to show prices rose 2.4% in the 12 months through April, the same rate as a month earlier. Check out below how inflation has tracked in recent years:

Rents and home prices aren’t going up like crazy anymore, but they are still one of the biggest sources of U.S. inflation.

Chicago Fed chief Austan Goolsbee called the April inflation report 'comforting' but said he needs to see several more as officials consider rate cuts

CPI shows the 2% inflation target nearing, hinting at possible Fed rate cuts. Explore key market reactions and what this means for your investments.