U.S. consumers increased their spending at the weakest pace in six months, while the 12-month rise in consumer prices was the largest in nearly five years.
The Commerce Department says consumer spending edged up a tiny 0.1 per cent in February following a 0.2 per cent increase in January. The small gain supports the view of many economists that overall economic growth probably slowed in the first quarter.
Incomes, however, were up a solid 0.4 per cent in February, offering hope for stronger consumer spending in coming quarters.
Meanwhile, an inflation gauge closely watched by the Federal Reserve increased 2.1 per cent in February compared to a year ago. It is the sharpest 12-month rise since March 2012 and slightly above the Fed's 2 per cent inflation target.
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