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US consumers remained cautious about spending last month as inflation ticked higher

Inflation picked up last month and consumers barely raised their spending, signs that the economy was already cooling even before most tariffs were imposed. Excluding the volatile food and energy categories, core prices rose 2.8% compared with a year ago, higher than January’s figure of 2.7%. Economists watch core prices because they are typically a better guide of where inflation is headed.

US consumer spending rebounds in February; core inflation firmer

WASHINGTON (Reuters) -U.S. consumer spending rebounded in February amid rising prices for goods and services, which could amplify fears that the economy was facing a period of tepid growth and high inflation amid an escalation in trade tensions. The report from the Commerce Department on Friday showed a measure of underlying price pressures increasing by the most in 13 months. Economists say President Donald Trump's protectionist trade agenda, marked by a rush of tariff action announcements since taking office in January, will boost prices of imported goods and drive inflation higher in the months ahead.

Wall St slips after data fans inflation worries

Wall Street's main indexes took a step back on Friday, as fresh data highlighted an uptick in underlying price pressures that surpassed expectations, igniting concerns that the Trump administration's tariff strategies might further fan the flames of inflation. A Commerce Department report showed the Personal Consumption Expenditures Price index rose in line with what economists polled by Reuters were expecting. Equities have endured pronounced downturns over the past month, fueled by apprehensions that President Donald Trump's policies could usher the economy into an era of elevated inflation and sluggish growth, potentially casting a shadow over the Federal Reserve's monetary policy path.