U.S. consumer prices rebounded moderately in April as declining food costs partially offset rising rents, leading to the smallest annual increase in four years, but the inflation outlook remains unclear against the backdrop of tariffs.

WASHINGTON (Reuters) - U.S. consumer prices rebounded moderately in April, leading to the smallest annual increase in four years, but the inflation outlook remains unclear against the backdrop of tariffs.

Consumer prices rose again in April after a rare decline in the prior month, leaving inflation above the Federal Reserve’s 2% target as households and businesses grappled with the fallout from the Trump trade wars.