(Reuters) – U.S. household spending grew more than expected in September while inflation remained high, 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 0.7% last month, compared to an increase of +0.4% in August.
Economists polled by Reuters expected on average a 0.5% increase in spending.
The increase in household spending partly reflects the general increase in prices, and more particularly those of energy (+1.7%).
The PCE consumer price index rose 0.4% in September, a stable increase. Its increase over one year stands at +3.4%, just like in August.
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 0.3% over one month after 0.1% in August.
Over one year, its increase is 3.7%, compared to 3.8% in August.
Economists polled by Reuters expected on average an increase of 0.3% over one month and 3.7% over one year.
(Writing by Gaëlle Sheehan, edited by Kate Entringer)
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