logo

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

a16z Crypto: 9 Charts to Understand the Evolution Trends of Stablecoins

Stablecoins are evolving from trading tools into universal payment infrastructure, and this process is quieter and more thorough than most people expected.

Refutation of Yang Haipo's "The End of Cryptocurrency"

This may be the true test of cryptocurrency. It's not about whether the price has reached a new high, nor about who will achieve financial freedom in the next bull market, but rather whether, after all the grand narratives have been washed away by cycles, it can still leave behind some simpler, more...

Can a hairdryer earn $34,000? Interpreting the reflexivity paradox of prediction markets

Prediction markets are essentially betting on reality, and when participants can access or even influence this path earlier, the market no longer just reflects reality but begins to shape it in return.

6MV Founder: In 2026, the "landmark turning point" for crypto investment has arrived

"I will deploy funds in 2026, so I will tell you this is the best year in history."

Abraxas Capital Mints $2.89 Billion USDT: Liquidity Boost or Just More Stablecoin Arbitrage?

Abraxas Capital just received $2.89 billion in freshly minted USDT from Tether. Is this a bullish liquidity injection for crypto markets, or is it business as usual for a stablecoin arbitrage giant? We analyze the data and the likely impact on Bitcoin, altcoins, and DeFi.

A VC from the Crypto world said AI is too crazy, and they are very conservative

Amid the Crypto frenzy and with investors who once missed out on Pinduoduo, a new AI fund called Impa Ventures was established, rejecting bubble narratives and adhering to a conservative "problem-first" strategy to seek real business value.

Popular coins

Latest Crypto News

Read more