Inflation cools; Americans step up spending

A closely watched inflation gauge cooled last month in a sign that prices were steadily easing before most of President Donald Trump’s tariffs were implemented.

At the same time, consumers accelerated their spending, particularly on cars, likely in an effort to get ahead of the duties.

Wednesday’s report from the Commerce Department showed that consumer prices rose just 2.3% in March from a year earlier, down from 2.7% in February. Excluding the volatile food and energy categories, core prices rose 2.6% compared with a year ago, below February’s 3%. Economists track core prices because they typically provide a better read on where inflation is headed.

The slowdown in inflation could be a temporary respite until the widespread duties imposed by Trump begin to push up prices in many categories. Most economists expect inflation to start picking up in the coming months.

“Core inflation will inevitably rebound sharply in the coming months,” Harry Chambers, assistant economist at Capital Economics, said in an email. “Goods prices will rise much more strongly.”

Chambers expects core inflation will near 4% by late this year.

Wednesday’s report also showed that consumer spending increased 0.7% from February to March, a healthy gain. Much of the increase appeared to be driven by efforts to get ahead of duties, such as Trump’s 25% duty on imported cars, which took effect April 3. Spending on autos surged 8.1% in March. Still, that means auto sales are likely to fade in the coming months because those assets have already been secured.

Visa turns to AI shopping to push advertising

Visa’s Chief Executive Officer Ryan McInerney said advertising will be forced to evolve as shoppers turn to artificial intelligence agents to help them browse products and make purchases.

The payments company is enabling AI agents to do just that, cutting down the time and energy consumers spend on finding and paying for the ideal item or service online, Visa said in a statement Wednesday. It’s collaborating with Anthropic PBC, Microsoft Corp., OpenAI Inc. and other AI firms on the product launch.

“There’s so much inventory out there, there’s so many places to go buy, and we just don’t have the time to optimize our own shopping experience,” McInerney said in an interview with Bloomberg Television. “I think shopping’s going to evolve. I think advertising will have to evolve. We know that payments is going to evolve to enable all of this, and we’re excited about the role that we play in that part of it.”

Robby Starbuck sues Meta over AI responses

Conservative activist Robby Starbuck has filed a defamation lawsuit against Meta alleging that the social media giant’s artificial intelligence chatbot spread false statements about him, including that he participated in the riot at the U.S. Capitol on Jan. 6, 2021.

Starbuck, known for targeting corporate DEI programs, said he discovered the claims made by Meta’s AI in August 2024, when he was going after “woke DEI” policies at motorcycle maker Harley-Davidson.

“One dealership was unhappy with me and they posted a screenshot from Meta’s AI in an effort to attack me,” he said in a post on X. “This screenshot was filled with lies. I couldn’t believe it was real so I checked myself. It was even worse when I checked.”

Since then, he said he has “faced a steady stream of false accusations that are deeply damaging to my character and the safety of my family.”

Compiled from Associated Press and Bloomberg reports.