U.S. consumer spending grew steadily in July, but inflationary pressures remained stubborn

Despite persistently high inflation, US consumer spending grew at its fastest pace in four months in July, demonstrating resilient demand. Data from the US Bureau of Economic Analysis on Friday showed that inflation-adjusted consumer spending rose 0.3% month-over-month. Income growth fueled the increase, with goods consumption being the primary driver. The core personal consumption expenditures price index, excluding food and energy, rose 0.3% month-over-month, bringing the year-over-year increase to 2.9%, the highest level since February.