A closely watched inflation gauge cooled last month in a sign that prices were steadily easing before most of President Donald Trump’s tariffs were implemented.At the same time, consumers accelerated their spending,

U.S. consumer spending increased solidly in March as households boosted purchases of motor vehicles to avoid higher prices and shortages due to tariffs, but that did little to change economists' views that the economy had shifted into lower gear.

Inflation slowed sharply in March, moving closer to the Federal Reserve’s 2% target, while tariff-induced consumer spending continued to fuel the economy.

The cost of U.S. goods and services was flat in March and put the Federal Reserve closer to its 2% inflation target, but tariffs and trade wars threaten to undo the latest progress.

Inflation slowed down in March, going by the Federal Reserve's preferred gauge, showing that price pressures were easing before President Trump's steep new tariffs landed earlier this month. The personal-consumption-expenditures price index rose by 2.