US inflation rises to 3-year high, spending picks up

US consumer spending increased in May, with inflation reaching its highest point in over three years. The personal consumption expenditures price index, a key inflation measure, rose 4.1% year-over-year in May, the largest increase since April 2023. Excluding volatile food and energy prices, inflation was up 3.4% annually. This acceleration in spending occurred despite the rising prices, suggesting consumers are continuing to spend. Inflation-adjusted consumer spending grew by 0.3% in May, recovering from a standstill in April. These figures were released by the Bureau of Economic Analysis.