US inflation rises to a three-year high, with consumer spending growth accelerating.

Despite inflation rising to its highest level in more than three years, U.S. consumer spending growth accelerated in May, indicating that American consumers are weathering the impact of the war with Iran.

Bloomberg, citing data released by the U.S. Bureau of Economic Analysis on Thursday (June 24), reported that the U.S. personal consumption expenditures (PCE) price index rose 4.1% year-on-year in May, the largest increase since April 2023. Excluding food and energy prices, the core PCE price index rose 3.4% year-on-year.

Consumer spending, adjusted for inflation, rose 0.3% from the previous month.

Another report showed that the U.S. economy grew at an annualized rate of 2.1% in the first quarter, higher than the previously released preliminary estimate.

Source: [Lianhe Zaobao] (https://www.zaobao.com/news/world/story20260625-9265987)