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

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.

Recent inflation data shows a moderate increase, yet economists warn that Trump's tariffs could still impact the U.S. economy. With the Consumer Price Index rising by 0.2% in April, the Federal Reserve may pause interest rate cuts.

The dollar fell and major U.S. stock indexes rose on Tuesday on news that U.S. consumer inflation picked up less than expected in April when President Donald Trump unveiled a raft of tariffs that has wreaked havoc on global markets.

Wall Street stocks mostly rose Tuesday while oil prices advanced, extending a rally as the improved state of US-China trade boosts the economic outlook.

The latest US inflation data offers a promising sign as consumer price increases slow down. With a 2.3% rise in April, inflation shows signs of cooling, marking the lowest rate since 2021.