The slowdown in spending could reflect some early caution on the part of consumers, economists said, in response to higher goods prices.

A key U.S. inflation gauge slowed last month as President Donald Trump’s tariffs have yet to noticeably push up prices, while American incomes jumped.

Most economists had expected price pressures to start showing up more meaningfully in the data over the summer and for growth to moderate after that point.

A cooler inflation reading from the month when President Trump's tariffs went full blast likely won't shake the Federal Reserve's stance of holding interest rates steady. The reason: Policymakers still expect price increases later in 2025.