Consumer Spending Resilient Amid Persistent Inflation

Posted on September 26, 2025 at 11:50 PM

Consumer Spending Resilient Amid Persistent Inflation

In August 2025, U.S. consumer spending demonstrated remarkable resilience, rising by 0.4% after adjusting for inflation. This marks the third consecutive month of growth, surpassing economists’ expectations and signaling sustained economic momentum despite ongoing inflationary pressures. (Bloomberg)

Economic Implications

The consistent increase in consumer spending suggests that households continue to drive economic activity, even as inflation remains elevated. This trend may influence Federal Reserve policy decisions, as robust consumer demand could support economic growth, potentially leading to adjustments in interest rates.

Glossary

  • Consumer Spending: Expenditures by households on goods and services, a key indicator of economic health.

  • Inflation-Adjusted Spending: Consumer spending figures that have been adjusted to account for changes in price levels, providing a clearer picture of real purchasing power.

  • Federal Reserve: The central banking system of the United States, responsible for monetary policy, including setting interest rates.

Source

For more detailed information, refer to the full article on Bloomberg: US Consumer Spending Beats Estimates With Core Inflation Steady