U.S. Inflation Eases in April Despite Tariff Concerns

The recent PCE inflation data showed minimal month-to-month increases and a further slowdown in annual inflation, driven by unprecedented drops in financial and recreation services indices, which are expected to rebound sharply. The core services inflation remains significant in other categories, and the market-based PCE index indicates a potential acceleration in inflation, with the Federal Reserve likely to address these volatile components in upcoming discussions.