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Inflation cooled further in March, but tariffs loom

  • CNN
  • April 30, 2025
CNN

 — 

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.