The Federal Reserve will have little reason to change its wait-and-see stance as a result of April's inflation reading from the consumer-price index. The figures were largely in line with the expectations of forecasters who closely track how the Labor Department measures inflation.

Annualized inflation eased to a 2.3 percent pace, the lowest since early 2021. But the month-to-month pace of inflation increased.

Inflation retreated again in April on the back of lower prices for consumer staples like groceries and gasoline, and other items such as used cars and clothing. The consumer price index, a key inflation gauge, rose 2.3% in April from 12 months earlier, down from 2.4% in March, the Bureau of Labor Statistics reported Tuesday.

Inflation eased to a four-year low in April as the nascent impact of President Donald Trump’s sweeping tariffs were offset by their cost-dampening effects in a slowing economy. Overall consumer prices increased 2.

The Bureau of Labor Statistics' latest consumer price index report showed that inflation ticked slightly higher in April as tariffs begin to have an economic impact.

Despite soft April inflation data, rising tariffs are starting to pressure margins, prices, and Fed policy. A summer rebound in consumer inflation is likely as businesses begin passing costs to consumers.

A leading indicator of Japan's service-sector inflation hit 3.1% in April, data showed on Tuesday, keeping alive expectations of further interest rate hikes by the central bank. Service-sector inflation is being closely watched by the Bank of Japan for clues on whether prospects of sustained wage gains will prod firms to continue raising prices,

Investors will eye a range of data and reports in the remainder of this week to see how the trade war is affecting the economy, household sentiment and policymakers' thinking. Key reports will include Federal Reserve minutes,