Consumer Spending Rises as Inflation Remains Above Fed Target

According to the Joint Economic Committee's latest report, American consumer spending rose in August despite inflation remaining above the Federal Reserve's 2% target.

The Personal Consumption Expenditures (PCE) price index increased by 0.31% from July to August, while core PCE inflation, which excludes food and energy prices, rose by 0.25%.

Inflation-adjusted personal consumption expenditures increased by 0.55%, representing a rise of approximately $92.82 billion, with spending on goods accounting for much of the increase.