US Consumer Spending Rises Despite Tariff-Driven Price Hikes: June Update
Consumer spending in the US increased by 0.3% in June despite price hikes due to tariffs, as reported by the Commerce Department. The Personal Consumption Expenditures price index, which is used by the Federal Reserve to measure inflation, also rose by 0.3% on a monthly basis, reaching an annual rate of 2.6%, the highest since February. Economists had predicted a 0.3% increase in PCE from May and an annual acceleration to 2.5%. This is an ongoing story, and updates will be provided.