#CryptoCPIWatch

CPI April 2025: US Inflation Slows, But Tariffs Threaten Price Increases

On May 13, 2025, the US Consumer Price Index (CPI) report for April showed inflation slowing to 2.3% year-on-year, down from 2.4% in March, according to the Bureau of Labor Statistics (BLS). This is the lowest annual inflation rate since February 2021. On a monthly basis, the CPI rose 0.2%, lower than economists' expectations of 0.3%.

This decline was driven by lower prices for essentials such as gasoline, food, clothing, used cars, and airline tickets. However, housing costs, which account for one-third of the CPI, continued to rise by 4% year-on-year, although at a slower pace than in previous periods.

While this data is better than expected, economists warn that it may be a "temporary calm" before price increases due to new trade tariffs imposed by President Donald Trump. These tariffs, which took partial effect in April, have not yet been fully felt, but are expected to push the CPI higher starting with the May report. Some categories of goods are already showing price pressures, though offset by weaker service inflation.

On platform X, the crypto community such as @coinvestasi noted a generally positive market sentiment following the CPI report, with the crypto market beginning to "turn green" due to expectations of looser monetary policy. However, tariff uncertainty remains a concern.

This report gives the Federal Reserve room to hold interest rates while monitoring the impact of tariffs. Crypto investors and market participants are urged to remain vigilant, as inflation is expected to rise above 3% in the summer of 2025.