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. Car sales spiked last month as consumers and businesses accelerated their purchases to get ahead of tariffs. Auto sales could fall in the coming months as a payback for the pulled-forward activity.

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.