US consumer spending jumped more than expected in March amid strong demand for services, while inflation increased by the most in 16.5 years.
- Consumer spending, which accounts for over two-thirds of the US economic activity, rose 1.1% last month. Data for February was revised higher to indicate outlays rising 0.6% rather than 0.2% initially reported.
- The personal consumption expenditures (PCE) price index rose by 0.9% in March, the largest increase since September, after rising 0.5% in February.
- In the 12 months through March, the PCE price index rose 6.6%. That was the largest annual increase since 1982 and followed a 6.3% jump in February.
- The PCE price index, excluding the volatile food and energy items, rose 0.3% after a similar increase in February.
The so-called core PCE price index rose 5.2% year-on-year in March. The core PCE price index grew 5.3% in the 12 months through February.
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Source: Bureau of Economic Analysis