U.S. April CPI drops to 2.3%, Barclays warns of potential tariff-related price pressures in May.

US CPI inflation fell for the third consecutive month in April, falling to 2.3%, moving further towards the Fed’s 2% target. But economists at Barclays wrote that April’s data could be a near-term low for the time being. "We expect the May CPI report to show initial signs of tariff-related price pressures. The high-frequency data we track suggests that there is potential upward pressure on prices across a wide range of core commodity categories such as apparel, home, new cars and ‘other’ goods. "