1001 ET - U.S. consumers are showing signs of price fatigue, Wells Fargo's Tim Quinlan and Shannon Grein write. January PCE inflation cooled a little, to 2.5% from December's 2.6%, inching closer to the Fed's 2% target. Quinlan and Grein note that "inflation-adjusted spending dropped half a percentage point, the biggest monthly retrenchment in almost four years." PCE data show consumers trimming spending on cars and recreational goods. Quinlan and Grein say that the inflation outlook is uncertain, though. "Consumers are price fatigued, and major retailers have acknowledged this," while tariffs threaten to keep upward pressure on prices, they write. (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

February 28, 2025 10:01 ET (15:01 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.