Inflation cooled further in March, but tariffs loom

Inflation slowed sharply in March, moving closer to the Federal Reserve’s 2% target, while consumer spending continued to fuel the economy. Wednesday’s report from the Commerce Department showed that the Personal Consumption Expenditures price index rose 2.3% in March from the year before, slower from February’s 2.

7% increase. On a monthly basis, prices were unchanged, versus 0.4% in February.



Economists expected the PCE price index to have cooled to 2.2% annually in March. Consumer spending rose 0.

7% from February, marking a sharp acceleration from 0.1%. But the latest data lands at a time when uncertainty is swelling about the extent to which President Donald Trump’s massive policy moves — including a broad suite of tariffs — could upend global order and the US economy.

This story is developing and will be updated..