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.

Producer Price Index, a measure of wholesale costs, fell 0.5% in April. Margins are squeezed by tariffs and firms will likely pass costs to consumers

Prices rose more slowly in April, marking another month of cooling inflation. Consumer prices rose just 0.2% from March, and they are up 2.3% from a year ago. That's the lowest annual increase since February 2021.