The U.S. Federal Reserve in May warned that America is facing an increased risk of stagflation. Inflation data for April somewhat assuages that fear.

Broken down by category, some of the sectors most impacted by tariffs saw a price decline from last month, including apparel and used cars and trucks.

U.S. consumer prices rebounded moderately in April as declining food costs partially offset rising rents, leading to the smallest annual increase in four years, but the inflation outlook remains unclear against the backdrop of tariffs.

CPI rose by 0.2% for the month, lowering the 12-month trend rate to 2.3% – the lowest trend rate since February 2021.

The crypto market stood at $3.4 trillion as the Consumer Price Index (CPI) in April stood at 2.3% over the last 12 months, the Bureau of Labor Statistics reported on May 13. The Federal Reserve has set an inflation target of 2%. As per Kraken's price feed, Bitcoin was trading at $103,587 at press time.

US-China trade truce euphoria is giving way to worry over economic slowdown in the wait for the latest US consumer inflation report

CPI reveals easing inflation at 0.221% with core at 0.237%. Recession odds drop; stay updated on key macro data shaping Fed rate decisions. Click for more.

You may see some price increases from tariffs in your shopping, but you won't see them in Wednesday's official report on inflation in April, forecasters say.