Inflation cooled for the third straight month in April even after some of President Donald Trump’s tariffs took effect, though economists and many business owners expect inflation will climb by this summer.

Consumer prices were up 2.3% in April from a year earlier, the Labor Department reported Tuesday, cooler than March’s gain of 2.4%. That was below the 2.4% that economists polled by The Wall Street Journal had expected.

Tamer-than-expected inflation and a significant de-escalation of a U.S.-China trade war are easing fears of a sharp squeeze on American households and businesses in coming months, prompting Wall Street firms to pare predictions of a recession and giving the Federal Reserve room to leave interest rates where they are.

The Consumer Price Index jumped 2.3% in April from the year before, below March’s 2.4% increase, the Bureau of Labor Statistics said Tuesday.

Asian shares are mostly higher as a cautious sense of relief spreads through regional markets after the U.S. and China agreed to a 90-day pause in their trade war to allow for negotiations.

Since U.S. President Donald Trump’s April 2 reciprocal tariff announcement, the 10-year Treasury yield has whipsawed in a 75-basis-point range, plunging to a six-month low and then rebounding to a two-month high within a week, driving a key bond volatility index to an 18-month high.

Inflation picked up speed in April after declining in March, according to data released Tuesday by the Labor Department. Economists expected price growth to pick up again amid deepening concerns about the impact of President Trump’s trade agenda,