US Consumer Spending Declines While Inflation Rises

Reported about 12 hours ago

In January, U.S. consumer spending unexpectedly dropped by 0.2%, following a revised 0.8% increase in December, as annual inflation moderated. This decline, attributed to factors such as front-running purchases and adverse weather conditions, alongside rising inflation expectations, may impact economic growth forecasts for the first quarter. Financial markets anticipate that the Federal Reserve will resume interest rate cuts in June, despite ongoing inflation pressures from recent tariff hikes by the Trump administration.

Source: YAHOO

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