The cost of U.S. goods and services was flat in March and put the Federal Reserve closer to its 2% inflation target, but tariffs and trade wars threaten to undo the latest progress.

Inflation slowed down in March, going by the Federal Reserve's preferred gauge, showing that price pressures were easing before President Trump's steep new tariffs landed earlier this month. The personal-consumption-expenditures price index rose by 2.

The Federal Reserve’s preferred inflation gauge stalled in March for the first time in nearly a year and consumer spending was strong, a welcome reprieve before tariffs are expected to broadly drive up prices.