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Inflation’s Temporary Dip: Why April’s 4-Year Low Won’t Last Through Summer

US inflation hit its lowest point since February 2021, dropping to 2.3% in April. However, economists warn this is likely the “low point in 2025” due to recently implemented tariffs whose effects weren’t fully captured in April’s data. Even with some tariff reductions, trade restrictions remain at their highest levels since World War II.

The Federal Reserve is closely monitoring the situation, as rising inflation could complicate their plans for potential interest rate cuts. While most economists don’t expect stagflation, they anticipate inflation rising above 2.5% in the coming months.

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