The Federal Reserve’s preferred inflation gauge has experienced a significant pause in its upward trend, raising questions about the future trajectory of prices and the potential for economic slowdown. Data released Wednesday by the Bureau of Economic Analysis reveals that the personal consumption expenditures (PCE) price index remained flat from February to March, marking the first time since last year it hasn’t seen any change. Core PCE, a measure of inflation excluding food and energy, also remained unchanged in March. This indicates a potential slowdown in inflationary pressure after a prolonged period of rising prices. 7 However, this pause was not accompanied by a decrease in consumer spending. In fact, consumer spending saw an increase of 0.7% during March, with February’s inflation-adjusted spending figures further boosting the total spending. This suggests that consumers remain actively engaged in spending even though their purchasing power is challenged by the potential for tariffs to push prices higher.