Sunny side down: Eggs, airfare and inflation take a breather
Sunny side down: Eggs, airfare and inflation take a breather
Inflation eases to 2.3% as prices cool across key categories
Sunny side down: Eggs, airfare and inflation take a breather
Inflation eases to 2.3% as prices cool across key categories
05.13.2025
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·Sunny side down: Eggs, airfare and inflation take a breather
Sunny side down: Eggs, airfare and inflation take a breather
Some much-needed relief is landing in consumers’ wallets. Inflation slowed more than expected in April, with prices rising just 2.3% year-over-year — down from 2.4% in March, and marking the smallest annual increase since February 2021, according to the Consumer Price Index (CPI) from the Bureau of Labor Statistics.1 On a month-to-month basis, prices rose a modest 0.2%, and the food at home index fell 0.4% in April, the largest decline in that index since September 2020.2
And while many categories were a mixed bag, two standouts saw noticeable drops: eggs and airfare. After spiking earlier this year, egg prices tumbled 12.7% in April compared to the previous month.3 Still, they’re not back to normal — up 49.3% compared to a year ago — but the dip is a welcome break for breakfast budgets.4
Read more: Shifting American spending habits
Airfare drops, easing travel costs
Travelers also got a little lift. Airline fares fell 2.8% since March and are down nearly 8% year over year, hinting at more affordable travel ahead.5
Household goods followed suit. Dishes and flatware saw a 2.6% drop from March and are 8.7% cheaper than 12 months ago.6 Even admission to sporting events took a surprising dip — down 12.2% month over month, though still up 9.3% since April 2024.7
Read more: Homebuyers gain edge in challenging spring market
Car and truck rentals increase
Not everything is headed south. Car and truck rentals ticked up 4.6% in April, likely due to seasonal demand, though prices remain 2.1% lower than this time last year.8
Core inflation, which excludes food and energy, rose 0.2% from March and is up 2.8% from last year.9
Read more: Riding the volatility waves
Potential impact of tariffs
However, recent tariff hikes could push inflation higher in coming months. While trade deals with the UK and China were announced in the past week, a 30% levy on Chinese imports remains in place.10,11 Federal Reserve chairman Jerome Powell said last week that these trade measures could delay inflation from hitting the Fed’s 2% target by at least a year.12
A Yale Budget Lab report estimates that tariffs could add nearly $5,000 to the average family’s annual grocery costs if shopping habits remain unchanged.13
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1 U.S. Bureau of Labor Statistics, “Consumer Price Index Summary,” May 2025
2 Ibid
3 Ibid
4 Ibid
5 Ibid
6 Ibid
7 Ibid
8 Ibid
9 Ibid
10 The Guardian, “US monthly inflation rate slows amid Trump tariffs,” May 2025
11 NBC News, “U.S. and China agree to slash tariffs for 90 days as trade talks continue,” May 2025
12 The Guardian, “US monthly inflation rate slows amid Trump tariffs,” May 2025
13 Food & Wine, “Trump’s Tariffs May Add Nearly $5,000 to the Average Family’s Annual Grocery Costs,” May 2025
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