US consumer spending rose in August despite spike in inflation: Report

US consumer spending rose in August despite spike in inflation: Report

The Commerce Department on September 30 said household spending surged by a solid 0.4% in August after going down 0.2% in July.

This development comes even as the US economy continues to battle increasing inflation.

The Federal Reserve has been making aggressive moves to tighten monetary policy.

According to a recent report, the PCE-price index rose 0.3% in August after a 0.1% decline in July.

US stocks also took a hit after the release of spending and inflation figures, while bond markets calmed.

Spending on key services like rent, transportation, utilities and healthcare also rose strongly in August.

Meanwhile, personal saving rate was 3.5% in August for the second month in a row, a decent rise from 3% in June.

American households spend an average of $61,334 per year, which is about $5,111 per month.