Skip to content
Sign In Subscribe
Economy — Iran — Energy

How Is The Iran War Affecting US Inflation And Energy Prices

Consumer spending remained a bright spot. Inflation-adjusted spending increased 0.6% in August, its strongest monthly gain in more than a year

,   and  TIPP Staff
2 min read

US inflation remained elevated in August as higher energy costs linked to the Iran war continued to pressure households, according to the Commerce Department data cited by CNN.

The Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation measure, increased 0.3% from July, leaving annual inflation at 3.4%. Core PCE inflation, excluding food and energy, rose 0.2% monthly and remained at 3% annually for a third consecutive month.

💡
Consumer spending remained a bright spot. Inflation-adjusted spending increased 0.6% in August, its strongest monthly gain in more than a year. However, Americans saved less to maintain spending, with the personal saving rate falling to 4.1%, its lowest level in nearly four years.

Economists said a solid labor market has supported household spending despite price pressures. Employment growth has improved this year, with September jobs data due Friday.

The report also revised July’s annual PCE inflation rate down from 3.7% to 3.4% following updated Commerce Department calculations.

Related Tweet:

Also Read:

Canada Gets $23 Billion LNG Boost As Shell Approves Expansion
The Pacific Coast project is expected to supply Asian markets, with expanded operations scheduled to begin in the early 2030s
tippinsightsTIPP Staff

Comments

Related

Latest