February Witnessed Slower US Consumer Spending and Reduced Inflation

US consumer spending rose moderately in February, following a jump the previous month, and despite signs of easing inflation, its rate remains elevated, which could prompt the Federal Reserve (the US central bank ) to raise interest rates again quest’year. .

The Commerce Department said Friday that consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.2% last month. January data was revised to show spending rose 2% instead of 1.8%, as reported in precedence.

Economists polled by Reuters had expected consumer spending to rise 0.3%.

Consumer spending also slowed as income increases faded.

With January data corrected and last month’s increase, consumer spending is heading for higher growth in the first quarter, after rising at the slowest pace in two and a half years in the Oct-Dec quarter, and that helps the economy expand. .

The personal consumption expenditure price index rose 0.3% last month after rising 0.6% in January. The index rose 5% in the twelve months to February, after reaching a 5.3% gain in January.

The personal consumption expenditure index, which excludes food and energy price volatility, rose 0.3%, after rising 0.5% in January.

The so-called core index rose 4.6% year-on-year in February, after rising 4.7% in January.

The lead gauge is the Fed’s preferred measure of inflation, with a target of 2%.