US Inflation Climbs as Consumers Spent More in May

US consumer spending accelerated in May, with inflation-adjusted spending rising 0.3% month over month even as prices increased at the fastest pace in more than three years. The report points to still-resilient consumer demand, but also persistent inflation pressure. Overall, the data are mixed and primarily relevant for expectations around economic growth and monetary policy.

Analysis

US consumer spending accelerated in May, with inflation-adjusted spending rising 0.3% month over month even as prices increased at the fastest pace in more than three years. The report points to still-resilient consumer demand, but also persistent inflation pressure. Overall, the data are mixed and primarily relevant for expectations around economic growth and monetary policy.