Inflation Rises Far Less Than Forecast, Defying Predictions on Impact of Tariffs From ‘Experts’

Economists had predicted higher inflation, but data shows prices remained flat or declined in key areas.

Key Facts:

  • The Consumer Price Index rose 0.2% in April, less than the 0.3% expected.
  • Year-over-year inflation hit 2.3%, the lowest since February 2021.
  • Core inflation rose 0.2% in April and is up 2.8% annually.
  • Gas, eggs, toys, and used cars saw price declines in April.
  • Trump’s tariffs went into effect April 2, yet prices remained stable.

The Rest of The Story:

Despite widespread warnings from economists, U.S. inflation rose modestly in April and remained well below expectations.

The overall CPI increase was just 0.2%, and core inflation—excluding food and energy—matched that pace.

Both figures were beneath economist forecasts.

April’s inflation report marked the third month in a row where predictions overestimated inflation.

Many analysts had warned that President Trump’s new tariffs, especially on Chinese imports, would cause a sharp uptick in consumer prices.

However, the data show otherwise.

Items expected to be hit hard by tariffs, such as automobiles and toys, stayed flat or even declined in price.

Egg prices fell by 12.7%, the biggest drop since 1984.

Gas prices continued their downward trend, and grocery prices also edged lower.

On the other hand, housing-related costs like rent and owners’ equivalent rent ticked up, pointing to domestic demand pressures rather than trade policy as the real inflation driver.

Commentary:

Once again, the so-called economic experts and media talking heads have been proven wrong.

In early April, Trump announced fresh tariff hikes on China.

The response? Panic from the usual crowd claiming prices would skyrocket, hurting consumers and destabilizing markets.

But the numbers speak for themselves.

Not only did prices not surge, they came in cooler than forecast.

Gas is cheaper, eggs plummeted, and even categories like toys and smartphones—which rely heavily on imports—saw continued price drops.

So much for the “tariff-driven inflation” theory.

This isn’t the first time these experts have misled the public.

From trade to taxes to deregulation, the professional forecasters have routinely underestimated how resilient and adaptive the American economy can be when freed from excessive international dependence and bureaucracy.

The reality is simple: Trump’s strategy of using tariffs to rebalance trade and restore industrial power at home is working.

The economy isn’t breaking under pressure—it’s adjusting.

Market behavior has shown flexibility, competition is holding prices in check, and in key categories, consumers are actually seeing relief.

This is exactly the kind of proof that justifies a more aggressive trade policy.

We were told tariffs would wreck the consumer economy.

Instead, we’re seeing stability and in some cases, price drops.

If that’s failure, Americans will take more of it.

Now that tariffs have not created chaos, the door is open for stronger, more favorable trade negotiations.

These deals can further bolster domestic production, reduce dependency on adversarial countries like China, and set the stage for an American economic boom.

Americans should remain confident.

The media got it wrong. The experts got it wrong. But the policy is getting it right.

The Bottom Line:

April’s inflation report proves fears about Trump’s tariffs were exaggerated.

Prices stayed stable—or fell—in most sectors, while housing costs drove the modest inflation uptick.

The facts on the ground contradict mainstream forecasts, offering hope that current trade policies are setting the stage for continued economic growth.

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