American consumer spending is increasing while key inflation indicators are slowing down.

Consumer spending in the United States increased in March, while a key inflation indicator slowed down, providing a brief respite before tariffs are expected to bring widespread price hikes. According to data released by the Bureau of Economic Analysis on Wednesday, inflation-adjusted consumer spending rose by 0.7% last month. This is the highest increase since the beginning of 2023, indicating that households are spending heavily before the new tariffs arrive. At the same time, the inflation indicator preferred by the Federal Reserve, the Personal Consumption Expenditures Price Index, showed its first stagnation in nearly a year on a month-to-month basis. Excluding food and energy, the core PCE Price Index also remained flat, the lowest in nearly five years.