US inflation likely accelerated in April after an unexpected cooldown the previous month, with higher tariffs on Chinese goods in particular starting to impact prices.

Tuesday’s report could provide an early read on how Trump’s duties will affect the prices Americans pay for necessities.

The dollar fell and major U.S. stock indexes were higher on Tuesday after data showed U.S. consumer inflation picked up less than expected in April when President Donald Trump unveiled a raft of tariffs that have wreaked havoc on global markets.

The consumer price index rose a seasonally adjusted 0.2% for the month, putting the 12-month inflation rate at 2.3%, its lowest since February 2021. The core CPI also increased 0.2% for the month, while the year-over-year level was 2.

DAX gains as US-China tariff pause lifts sentiment; traders eye ZEW sentiment forecast and US CPI for direction. EU trade tensions may cap upside.

US consumer prices probably picked up in April after the smallest advance in nine months, foreshadowing a broader acceleration as many companies seek to pass on higher tariffs.

US economic outlook improves, inflation forecasts drop and recession odds fall after US-China trade deal to reduce the highest tariffs for 90 days.

DAX advances while US trade tensions and Fed policy uncertainty tests sentiment. Key earnings and tariff risks influence the DAX forecast today.

The latest US consumer inflation report revealed easing prices in April as euphoria over the US-China trade truce faded.

The consumer-price index showed annual inflation easing slightly to 2.3% in the 12 months through April. That marked the slowest annual rate since early 2021 and undershot expectations that it would remain at 2.