Additionally, there was a 0.4% drop in food prices, the largest decline since September 2020
These April data exceeded analysts' expectations, who predicted a monthly increase of 0.3% and an annual rate that would remain at 2.4%, which did not happen. The drop in inflation indices caused a positive reaction in the markets, with a rebound in stocks.
The tense but crucial trade negotiations between the United States and China concluded last Sunday in Geneva with a positive tone and promises of progress, although without immediate disclosure of concrete details.
Officials from both countries described the outcome as a ''agreement'' or ''important consensus'', suggesting a turning point in one of the most intense trade disputes in recent history.
The talks, held in a Swiss diplomatic villa overlooking Lake Geneva, were led by U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer on the American side, while China was represented by Vice Premier He Lifeng, Vice Minister of Commerce Li Chenggang, and Vice Minister of Finance Liao Min.
It was mentioned that an agreement was reached that will help reduce the U.S. trade deficit of 1.2 billion dollars, which could mean a significant reduction in reciprocal tariffs imposed by both the United States and China, normalizing trade relations.
Annual inflation in the United States slowed down for the third consecutive month in April, despite the implementation of some tariffs pushed by President Donald Trump.
According to the Labor Department on Tuesday, consumer prices increased by 2.3% compared to the same month the previous year, below the 2.4% recorded in March, marking the lowest level since February 2021, four years ago.
On a monthly basis, prices had a slight rise of 0.2% between March and April, after having decreased by 0.1% in the previous month, which represented the first drop in five years.
Regarding food, there was a 0.4% drop in supermarket prices, driven in part by a sharp 12.7% decrease in the cost of eggs. According to official data, it was the largest reduction in food prices consumed at home since September 2020.
