US household spending rose in January, exceeding analysts’ estimates, while upward pressure on prices continued, with annual inflation remaining at a four-decade high.
In particular, consumer spending rose 2.1% last month, after falling 0.8% in December, according to the US Department of Commerce. The average estimates of analysts in a Reuters poll spoke of an increase of 1.5%.
At the same time, the price index for personal consumption expenditure – the Fed’s preferred index for inflation – rose 0.6% in January after rising 0.5% in December. In the 12 months to January, the index climbed to 6.1% after an annual rise of 5.8% in December. This is the largest increase since 1982.
Excluding energy and food, the construction index rose 0.5% in January from December after a similar rise last month. On an annual basis, the index climbed to 5.2%, after rising 4.9% in December. The rise in January is the largest since 1983.
Source: Capital
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