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Economic Buzz: US consumer spending edges up as inflation remains elevated
10-Apr-2026 08:31
US consumer spending increased modestly in February, according to the latest data from the Commerce Department. Overall spending rose 0.5% from January, an improvement from the previous month's 0.3% gain.

However, after adjusting for inflation, the increase was minimal at just 0.1%, indicating that higher prices continue to weigh on real purchasing power.

Inflation, measured by the Personal Consumption Expenditures (PCE) price index, rose 0.4% in February, keeping the annual rate at 2.8%. Core inflation, which excludes food and energy, also climbed 0.4% for the month, with the yearly rate at approximately 3%.

The data suggests that while consumer spending remains resilient, persistent inflation is limiting meaningful growth in real consumption.

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