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Tariff pressures still loom over summer outlook after softening US inflation in April

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The US PCE price index eased in April, rising 2.1% year-over-year, slightly below expectations but still above the Fed's target. While personal income increased and the saving rate jumped, new tariffs introduced by President Trump are expected to exert upward pressure on prices. Economists caution that inflation may reaccelerate later in 2025.
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