The Trump administration said early Monday that it had reached a deal with China to sharply reduce its tariffs on imports from that country. But even taking that agreement into account, U.S. average import taxes remain at 90-year highs, economists said, which could worsen inflation in the coming months.

Inflation retreated again in April on the back of lower prices for consumer staples like groceries and gasoline, and other items such as used cars and clothing. The consumer price index, a key inflation gauge, rose 2.3% in April from 12 months earlier, down from 2.4% in March, the Bureau of Labor Statistics reported Tuesday.

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.

Food inflation for the month of April as opposed to a year-ago is 1.78 per cent. Corresponding inflation rates for rural and urban are 1.85 per cent and 1.64 per cent, respectively.

Shelter costs, the consumer price index’s measure of how much people pay for housing, were up again last month. The sector, a persistently inflationary category, is proving a headache for economists and Fed officials looking to rein in price growth.

NEXT examines the layered challenges small business owners face in 2025: the threat of inflation, uneven consumer demand, and growing labor pressure.

By Pranoy Krishna BENGALURU (Reuters) -Indian consumer inflation likely eased to a near six-year low in April after a further moderation of food price rises, keeping it below the Reserve Bank of India's 4% medium-term target for a third straight month,