Consumer spending, the primary driver of economic growth, rose 0.1% in May from the prior month, the Commerce Department said Friday, compared with a revised 0.6% increase in April. Americans spent more on services such as healthcare and air travel, while spending on goods such as autos declined. The Fed's preferred gauge of consumer prices, the personal-consumption expenditures price index, rose 3.8% from a year earlier, down from 4.3% in April. Economists see core inflation as a better predictor of future inflation than overall inflation. From the prior month, overall prices increased 0.1%, easing from a 0.4% rise in April.

Source: Wall Street Journal June 30, 2023 13:17 UTC