US Consumer Spending Increased by 0.4% in December
Consumer spending in the US rose at a stable pace in December. Revenues also increased, and the savings rate fell to a new 12-year low. The data of the Commerce Department showed that purchases, which constitute about 70% of the economy, increased by 0.4% in December, according to forecasts. The incomes of the population also increased by 0.4%, against the backdrop of a rise in wages to a maximum of three months. Salary grew by 0.5% in December after 0.4 percent growth a month earlier.
Consumption of households in the fourth quarter increased by 3.8% year-on-year, which corresponds to the fastest rate since the end of 2014.
The Federal Reserve's estimated inflation rate, associated with consumption, increased by 0.1% in December compared to the previous month, and by 1.7% compared to the previous year. Excluding food and energy, the so-called base prices rose by 0.2%.