Mumbai, April 10 -- 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 ...