U.S. Consumer Spending & Inflation Report: June 2023
Following two months of declines, inflation-adjusted consumer spending rebounded partially in May. Household finances are showing signs of weakness, as disposable income and savings rates reversed their monthslong upward trend.
Month-over-month top-line inflation decreased from April, but core inflation grew at the same level for a third consecutive month.
Although the Federal Reserve decided to pause interest rate increases in June, persistently elevated core inflation will likely bring another rate hike this year.
About the author
Sofia Baig is an economist at decision intelligence company Morning Consult, where she works on descriptive and predictive analysis that leverages Morning Consult’s proprietary high-frequency data. Previously, she worked for the Federal Reserve Board as a quantitative analyst, focusing on topics related to monetary policy and bank stress testing. She received a bachelor’s degree in economics from Pomona College and a master’s degree in mathematics and statistics from Georgetown University.