US inflation likely accelerated in April after an unexpected cooldown the previous month, with higher tariffs on Chinese goods in particular starting to impact prices.

Rosner-Warburton noted that some prices fell as business weakened, particularly in travel. Air fares and hotel prices dropped noticeably last month, contributing to lower inflation, but that may have been driven by a decline in foreign visitors to the U.S.

U.S. consumer prices rebounded moderately in April as declining food costs partially offset rising rents, leading to the smallest annual increase in four years, but the inflation outlook remains unclear against the backdrop of tariffs.