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US inflation rises 3.4% in August as consumer spending jumps 0.9%: BEA

US inflation rises 3.4% in August as consumer spending jumps 0.9%: BEA

Washington [US], September 30 (ANI): US inflation, measured by the Personal Consumption Expenditures (PCE) price index, rose 3.4 per cent in August from the same month a year ago, while consumer spending increased 0.9 per cent during the month, according to the latest estimates released by the US Bureau of Economic Analysis (BEA).
The PCE price index increased 0.3 per cent from the preceding month in August. Excluding food and energy, the PCE price index increased 0.2 per cent during the month.
BEA said, “From the preceding month, the PCE price index for August increased 0.3 per cent. Excluding food and energy, the PCE price index increased 0.2 per cent”.
On a year-on-year basis, the PCE price index excluding food and energy increased 3.0 per cent in August.
The data also highlighted that personal income increased USD 66.6 billion, or 0.2 per cent at a monthly rate, in August, according to the BEA estimates.
Disposable personal income, which is personal income less personal current taxes, increased USD 68.6 billion, or 0.3 per cent during the month.
The increase in personal income primarily reflected higher compensation and government social benefits, according to the BEA.
The BEA also shared that the rise in consumer spending was spread across both goods and services. Spending on goods increased by USD 114.1 billion, while spending on services rose by USD 76.7 billion during August.
Personal outlays, which include personal consumption expenditures, personal interest payments and personal current transfer payments, increased by USD 190.7 billion in August.
Personal saving stood at USD 990.2 billion, while the personal saving rate, which measures personal saving as a percentage of disposable personal income, was 4.1 per cent.
The August data showed that consumer spending increased at a faster monthly rate than personal income. Personal consumption expenditures rose 0.9 per cent, compared with a 0.2 per cent increase in personal income and a 0.3 per cent rise in disposable personal income.
The PCE price index also increased during the month, with the overall index rising 0.3 per cent and the index excluding food and energy increasing 0.2 per cent.
On an annual basis, overall PCE inflation stood at 3.4 per cent, while the measure excluding food and energy was at 3.0 per cent.
The latest figures provide a snapshot of US household spending and income alongside price movements in August, with consumer spending recording a stronger increase than personal income during the month. (ANI)

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