U.S. consumer spending rose in July by the most in four months, indicating resilient demand in the face of stubborn inflation.
Inflation-adjusted consumer spending rose 0.3%, according to Bureau of Economic Analysis data out Friday, Aug. 29. The advance was boosted by income growth and driven by goods.
The so-called core personal consumption expenditures price index, which excludes food and energy items and is favored by the Federal Reserve, rose 0.3% from June. From the prior year, the gauge rose to 2.9%, the highest since February.
While a pickup in services costs underpinned the latest inflation figures, economists anticipate higher goods prices to put pressure on inflation in the coming months as recent U.S. tariffs filter through to shoppers. Read more.