WASHINGTON (AP) — 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, particularly on cars, likely in an effort to get ahead of the duties.
Wednesday’s report from the Commerce Department showed that consumer prices rose just 2.3% in March from a year earlier, down from 2.5% in February. Excluding the volatile food and energy categories, core prices rose 2.6% compared with a year ago, below February’s 2.8%. Economists track core prices because they typically provide a better read on where inflation is headed.
The slowdown in inflation could be a temporary respite until the widespread duties imposed by Trump begin to push up prices in many categories. Economists forecast that inflation could reverse its recent decline and reach 3% or higher by the end of this year.
Wednesday’s report also showed that consumer spending increased 0.7% from February to March, a healthy gain. Much of the increase appeared to be driven by efforts to get ahead of duties, such as Trump's 25% duty on imported cars, which took effect April 3.
Spending on autos surged 8.1% in March, the government said. But spending on restaurants and hotels also jumped after falling in February, a sign Americans are still willing to splurge a little on travel and dining out.
Car sales spiked last month as consumers and businesses accelerated acquisitions to get ahead of tariffs. That means auto sales may fade in the coming months because those assets have already been secured.
Earlier Wednesday, the government reported that consumer spending slowed in the first three months of the year, compared with last year’s final quarter, as bad weather depressed shopping and Americans took a breather after healthy spending over the winter holidays.
The nation’s economy actually shrank 0.3% in the January-March quarter as imports surged as companies sought to get ahead of Trump’s tariffs.
Trump benefited in last year’s election from broad dissatisfaction among voters about the steep rise in prices that began in 2021 and that, on average, pushed prices up about 25% by the middle of last year. Grocery costs shot up nearly 30%. As a candidate, Trump said he would immediately lower prices if elected.
Yet the president has slapped 25% duties on steel and aluminum, as well as cars, and a 10% tariff on nearly all other imports. And China, the United States’ third-largest trading partner, now faces a 145% duty on its exports.
The inflation-fighters at the Federal Reserve target a 2% inflation rate and pay close attention to Wednesday’s inflation gauge, known as the personal consumption expenditures price index. The better-known consumer price index was released earlier this month and also showed a steady decline.
Trump has pushed the Fed to cut its key short-term interest rate because inflation has cooled. But Fed Chair Jerome Powell has underscored that the central bank is likely to remain on the sidelines as officials gauge how tariffs will impact the economy. The Fed isn’t expected to lower its rate at its policy meeting next week.
A shopper looks at a clothing display at a Gap store, Friday, April 18, 2025, in Miami Beach, Fla. (AP Photo/Marta Lavandier)
Shoppers move through a market in the Chinatown neighborhood of Los Angeles, Monday, April 21, 2025. (AP Photo/Andy Bao)
PITTSBURGH (AP) — Lamar Jackson thought it was over. That the Baltimore Ravens' unwieldy season would end up in a familiar spot: the playoffs.
Then, rookie kicker Tyler Loop's potential game-winning field goal from 44 yards out drifted a little right. And then a little further right. And then a little further right still.
By the time it fluttered well wide of the goalposts, the playoffs were gone. So was Jackson's certainty after a 26-24 loss to Pittsburgh on Sunday night sent the Ravens into what could be a turbulent offseason.
“I'm definitely stunned, man,” Jackson said. “I thought we had it in the bag. ... I don't know what else we can do.”
Jackson, who never really seemed fully healthy during his eighth season as he battled one thing after another, did his part. The two-time NFL MVP passed for 238 yards and three touchdowns, including two long connections with Zay Flowers in the fourth quarter that put the Ravens (8-9) in front.
It just wasn't enough. Baltimore's defense, which played most of the second half without star safety Kyle Hamilton after Hamilton entered the concussion protocol, wilted against 42-year-old Steelers quarterback Aaron Rodgers.
Rodgers passed for a season-high 294 yards, including a 26-yard flip to a wide-open Calvin Austin with 55 seconds to go after a defender slipped, symbolic of a season in which Baltimore's defense only occasionally found its form.
Still, the Ravens had a chance when Jackson found Isaiah Likely for a 28-yard gain on fourth down from midfield. A couple of snaps later, the 24-year-old Loop walked on to try to lift Baltimore to its third straight division title.
Instead, the rookie said he “mishit” it. Whatever it was, it never threatened to sneak between the goalposts.
“It’s disappointing,” Loop said.
Loop was talking about the game. He might as well have been talking about his team's season.
The Ravens began 1-5 as Jackson dealt with injuries and the defense struggled to get stops. Baltimore found a way to briefly tie the Steelers for first in late November, only to then split its next four games, including a home loss to Pittsburgh.
Still, when Jackson and the Ravens walked onto the Acrisure Stadium turf on Sunday night in the 272nd and final game of the NFL regular season, Baltimore was confident. The Ravens drilled Pittsburgh in the opening round of the playoffs a year ago behind the ever-churning legs of running back Derrick Henry.
When Henry ripped off a gain of 40-plus yards on the game's first offensive snap, it looked like it was going to be more of the same. While Henry did rush for 126 yards and joined Hall of Famer Barry Sanders as the only running backs in NFL history to have five 1,500-yard seasons, he was less effective in the second half.
Even that first run was telling of what night it was going to be, as an illegal block by wide receiver Zay Flowers cost Baltimore some field position. The Ravens ended up scoring on the drive anyway, thanks to a 38-yard fourth-down flip from Jackson to a wide-open Devontez Walker, but it started a pattern that was hard to shake as several steps forward were met with one step back on a night the Ravens finished with nine penalties for 78 yards.
“We were having a lot of penalties, which kept stopping drives," Jackson said. “But I'm proud of my guys because we kept overcoming. We kept overcoming adversity and situations like this. Divisional games (can) be like that sometimes.”
Particularly when the Steelers are on the other side of the line of scrimmage. Pittsburgh has won 10 of the last 13 meetings. And while a handful of them have been in late-season matchups with the Ravens already assured of reaching the playoffs, the reality is the Steelers have been able to regularly do something that most others have not: found a way to beat Jackson.
“It comes down to situations like this,” Jackson said. “Two-point conversion one year. Field goal another year. And again this year. Just got to find a way to get that win here.”
And figure out who is going to be around to help get it.
Head coach John Harbaugh's 18th season in Baltimore ended with the Ravens missing the playoffs for just the second time in eight years. Jackson turns 29 this week and is still one of the most electric players in the league.
Yet Harbaugh and Jackson have yet to find a way to have that breakthrough season that Harbaugh enjoyed with Joe Flacco in 2013 when the Ravens won the Super Bowl.
There was hope when the season began that the roadblocks that have long been in the franchise's way — Kansas City and Patrick Mahomes chief among them — would be gone.
While the Ravens did get their way in a sense — the Chiefs will watch the playoffs from afar for the first time in a decade after a nightmarish season of their own — it never all came together.
Jackson declined to endorse Harbaugh returning for a 19th season, saying the loss was still too fresh to zoom out on what it might mean for the franchise going forward.
Harbaugh, for his part, certainly seems up for running it back in the fall.
“I love these guys,” he said afterward. “I love these guys.”
AP NFL: https://apnews.com/hub/nfl
Baltimore Ravens quarterback Lamar Jackson, right, hands the ball off to running back Derrick Henry (22) during the first half of an NFL football game against the Pittsburgh Steelers, Sunday, Jan. 4, 2026, in Pittsburgh. (AP Photo/Gene J. Puskar)
Baltimore Ravens head coach John Harbaugh talks with an offical during the second half of an NFL football game against the Pittsburgh Steelers, Sunday, Jan. 4, 2026, in Pittsburgh. (AP Photo/Justin Berl)
Pittsburgh Steelers defensive tackle Cameron Heyward, left, greets Baltimore Ravens quarterback Lamar Jackson (8) after an NFL football game Sunday, Jan. 4, 2026, in Pittsburgh. (AP Photo/Gene J. Puskar)
Pittsburgh Steelers safety Jabrill Peppers (40) reacts after Baltimore Ravens kicker Tyler Loop (33) missed a field goal attempt in the second half of an NFL football game against the Pittsburgh Steelers, Sunday, Jan. 4, 2026, in Pittsburgh. (AP Photo/Gene J. Puskar)
