US Consumer Spending Accelerates Amid Rising Inflation
L'essentiel
- US consumer spending increased by 0.3% in May, defying rising inflation.
- Prices rose 4.1% year-on-year, the fastest in over three years, yet consumers continued to spend, potentially pressuring the Federal Reserve on interest rates.
Résumé généré par IA
Pourquoi c'est important
US consumer spending accelerated in May despite rising prices, and peace negotiations between the US and Iran have sent oil prices tumbling.
US consumer spending accelerated in May even as prices rose at the fastest pace in more than three years, suggesting Americans are powering through the fallout from the Iran war.
The personal consumption expenditures price index rose 4.1 per cent last month from a year earlier, the most since April 2023, Bureau of Economic Analysis data out on Thursday showed. Excluding food and energy, prices were up 3.4 per cent from a year earlier.
Inflation-adjusted consumer spending rose 0.3 per cent from a month earlier after stalling in April.
The numbers are likely to keep pressure on the Federal Reserve to raise interest rates this year.
Despite the recent peace negotiations between the US and Iran that have sent oil prices tumbling, economists expect the costs of an array of products to continue rising as the initial energy shock works its way through supply chains.
Looking ahead, the recent pullback in petrol prices could offer consumers some reprieve, though prices at the pump are still almost US$1 a gallon higher on average than before the war started.
À surveiller
Perspective IA — des possibilités, pas des certitudes
Federal Reserve may raise interest rates this year.
Probable · En quelques mois
Questions ouvertes
- Will inflation continue to outpace wage growth?
- How will the Fed respond to persistent inflation?
