(Reuters) – U.S. household spending rose in August while core inflation slowed, according to data released by the Commerce Department on Friday.
Consumer spending, which represents more than two-thirds of US economic activity, increased by an adjusted 0.4% last month, compared to an increase of +0.9% (revised) in July.
Economists polled by Reuters expected on average a 0.4% increase in spending.
The increase in household spending partly reflects the increase in prices, particularly those of fuel which pushed up the PCE inflation measure last month.
The PCE consumer price index increased by 0.4% in August over one month after +0.2% in July. Its increase over one year stands at +3.5% after +3.4% (revised).
The basic “core PCE” inflation index, closely monitored by the Federal Reserve and which excludes the volatile elements such as energy and food products, increased by 0.1% over one month after +0.2 % in July.
Over one year, its increase is 3.9%, compared to 4.3% in July.
Economists polled by Reuters expected on average an increase of 0.2% over one month and 3.9% over one year.
(Report by Nathan Vifflin, edited by Blandine Hénault)
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