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, suggesting consumers have turned more cautious this year.

Friday’s report from the Commerce Department showed that consumer prices increased 2.5% in February from a year earlier, matching January’s annual pace. Excluding the volatile food and energy categories, core prices rose 2.8% compared with a year ago, higher than January’s figure of 2.7%.

Economists watch core prices because they are typically a better guide of where inflation is headed. The core index has barely changed in the past year. Inflation remains above the Federal Reserve’s 2% target, making it difficult for the central bank to cut its key interest rate anytime soon.

The report also showed that consumer spending rebounded last month after falling by the most in four years in January. Yet much of the additional spending reflected price increases, with inflation-adjusted spending barely rising.

Consumer spending rose 0.4% in February, though the gain was just 0.1% after adjusting for prices. The mild increase follows a sharp 0.6% drop in January.

The spending increase was driven by greater purchases of long-lasting goods, such as cars and appliances, which could reflect an effort by shoppers to buy things before tariffs are imposed.

Spending on services, including discretionary spending such as restaurants and hotels, fell.

On a monthly basis, prices rose 0.3% in February from the previous month, the same as in January, while core prices increased 0.4%, the largest increase in more than a year.

One bright spot in the report was a big jump in incomes for the second straight month — they rose 0.8% in February from January. Higher income with weaker spending pushed up the savings rate, which can fuel future spending. But it also could reflect greater caution among consumers.

— Associated Press