Consumer prices rose just 0.2% in April, bringing the annual inflation rate down to 2.3% — the lowest level in three years, according to the latest Consumer Price Index data released Tuesday by the Bureau of Labor Statistics.
The slowdown in inflation comes as welcome news for consumers who have been struggling with high prices, though economists warn that potential tariff-related increases could soon change this picture.
When breaking down the numbers, overall food prices dropped, with egg prices plunging by 12.7% in April, though they're still nearly 50% higher than this time last year.
Airline fares, gas prices and used car costs all declined, while medical expenses and car insurance continued their upward climb.
But behind these statistics are real people and real businesses trying to make ends meet.
WATCH: Local business owners discuss impact of tariffs
Flora Mincy, who has been serving cobbler to the community for nearly three decades, is opening a new bakery location in Pleasant Ridge while fighting to preserve its legacy amid rising costs.
"I'm very concerned," Mincy said. "The way things are in office right now, you don't know what to expect. You don't know if it's going to cut you down or if prices are gonna go up."
She said essential ingredient prices are soaring to levels she's never seen before.
"Even fruit — I buy a lot of apples and peaches and things of that nature," Mincy said. "That stuff is so high, and sometimes they're out of that stuff because it's hard for them to get it to the United States."
The full impact of these tariffs isn't expected to hit immediately. Experts believe we'll see the real effects unfold over the next three to six months.
For Kendra Dorsey, who runs an event specialist and catering company, those tariffs aren't some abstract economic concept — they've already disrupted her supply chain.
"On my end, costs have increased tremendously," Dorsey said. "A couple of companies I no longer purchase from them due to the tariffs."
She's been forced to pivot to American-based suppliers for everything from cups to decorations.
Meanwhile, Mincy is strategically reworking her menu to focus on best-sellers while preparing for whatever economic changes might be coming next.
"I've had to raise prices ... I do feel that more increases are coming, but I do hope there's a stop to it at some point," Mincy said.
Despite recent tariff pauses from President Trump, some economists still predict inflation will rise in the coming months.
The Federal Reserve is watching closely, likely keeping interest rates steady while assessing how these tariff changes affect the economy.
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