Don't pop open the bubbly yet. The PCE index released Friday shows inflation easing to 2.1% annually in April, its lowest reading of the year. But it will likely reaccelerate for the remainder of 2025,

The Fed’s preferred gauge of consumer prices ticked up just slightly in April, a modest increase that lowered the 12-month inflation rate.

American consumers may be learning to live with inflation. A long-running Gallup poll shows a steep drop in the share of Americans who name inflation as their biggest financial problem.

U.S. inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after being unchanged in March,

American consumers reined in their spending and socked away their money in April following a tariff-fueled buying binge the month before, according to new data released Friday that also showed inflation cooled off again.

The Federal Reserve’s preferred inflation gauge came in mostly in line with expectations in April, offering a small sign of progress in the central bank’s fight to bring price pressures under control.

Friday brings another glimpse into how much of an issue inflation is in the U.S. economy. The PCE price index is expected to tick up 0.1% M/M in April vs. flat in March, according to the consensus of economists.