Economics

U.S. Consumer Spending Tops Forecasts Even as Inflation Jumps

Fed’s preferred price gauge has largest annual gain since 1982
Goods spending far outpaces services amid omicron wave

A shopper inside a clothing store in the East Village neighborhood of Des Moines, Iowa. — A shopper inside a clothing store in the East Village neighborhood of Des Moines, Iowa.
Photographer: Kathryn Gamble/Bloomberg

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By Reade Pickert

February 25, 2022 at 8:33 AM EST

Updated on

February 25, 2022 at 10:50 AM EST

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U.S. inflation-adjusted consumer spending advanced by more than expected in January, highlighting the resilience of American demand despite a surge in Covid-19 cases and prices rising by triple the Federal Reserve’s target.