[ad_1]
The consumer spending tracker price index – the PCE price index – rose 4.3% in the 12 months ending in August. This was a faster pace than July’s 4.2% and the fastest increase since January 1991.
Excluding food and energy prices, which tend to be volatile, the measure of inflation stood at 3.6%, where it has been since June. It remains the fastest core inflation rate since March 1991 and well above the Federal Reserve’s 2% target.
While prices have risen sharply, US revenues have grown only at a modest pace, up 0.2% or $ 35.5 billion. Disposable income grew even less – just 0.1% or $ 18.8 billion.
And yet Americans kept going out to spend their money. Consumer spending rose 0.8% or $ 130.5 billion in August.
This is a developing story. it will be updated
[ad_2]
Source link