US Inflation Hits 3.4% as Consumer Spending Surges

The US Bureau of Economic Analysis (BEA) released its latest estimates for August, showing that inflation rose by 3.4% year-over-year and consumer spending increased by 0.9%. The Personal Consumption Expenditures (PCE) price index, a key measure of inflation, increased 0.3% from the preceding month.

Excluding food and energy, the PCE price index rose 0.2% in August. On an annual basis, overall PCE inflation stood at 3.4%, while the measure excluding food and energy was at 3.0%.

The BEA also reported that personal income increased by USD 66.6 billion, or 0.2%, while disposable personal income rose by USD 68.6 billion, or 0.3%. The increase in consumer spending was spread across both goods and services, with spending on goods increasing by USD 114.1 billion and spending on services rising by USD 76.7 billion.