Economics
U.S. Consumer Spending Drops With Inflation Hitting 40-Year High
- Incomes rose in December at slower pace than prior month
- Fed plans to start rate hikes in March to fight inflation jump
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U.S. inflation-adjusted consumer spending fell last month by the most since February, suggesting that Americans tempered their outlays amid the latest Covid-19 wave and the fastest inflation in nearly 40 years.
Purchases of goods and services, adjusted for changes in prices, decreased 1% from November, the Commerce Department said Friday.