An inflation gauge closely watched by the Federal Reserve remained high last month even before the impact of most tariffs has been felt. Americans' spending increased after a steep fall last month but remained weak,

A strong increase in spending on goods suggests Americans were making purchases ahead of proposed tariffs from President Donald Trump.

Inflation held at 2.5% for the year ending in February, the Bureau of Labor Statistics reported Friday in an update to the personal consumption expenditures index, which is the Federal Reserve’s preferred gauge.