Inflation-adjusted U.S. consumer spending up a modest 0.1% in August
The numbers: Consumer spending rose a modest 0.4% in August, as Americans appeared to pocket savings from lower gas prices instead of using the extra cash on other goods and services.
The rate of consumer inflation using the so-called PCE price index has climbed 6.2% in the past year. The better known consumer price index has jumped an even sharper 8.3% in the same span. Incomes rose 0.3% in the month, the government said. Wages haven’t kept up with inflation over the past year, however, putting a further strain on households.
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