US consumer spending rises in August; underlying inflation slows
WASHINGTON: US consumer spending increased in August, but underlying inflation moderated, with the year-on-year rise in prices excluding food and energy slowing to below 4.0%. Consumer spending, which accounts for more than two-thirds of US economic activity, gained 0.4% last month, the Commerce Department reported on Friday. Data for July was revised higher to show spending increasing 0.9% instead of the previously reported 0.8%. Economists polled by Reuters had forecast spending would gain 0.4%. Some the rise in spending last month reflected higher prices. Gasoline prices accelerated in August, peaking at $3.984 per gallon in the third week of the month, the highest this year, according to data from the US Energy Information Administration. That compared to $3.676 per gallon during the ...