US consumers keep spending briskly even in the face of persistent inflation and high interest rates

WASHINGTON (AP) — An inflation gauge that is closely monitored by the Federal Reserve showed price increases remained elevated in September 2023 amid brisk consumer spending and strong economic growth. Prices rose 0.4% from August to September, the same as the previous month. And compared with 12 months earlier, inflation was unchanged at 3.4%. Taken as a whole, the figures the government issued Friday (Oct. 27, 2023) show a still-surprisingly resilient consumer, willing to spend briskly enough to power the economy even in the face of persistent inflation and high interest rates. Spread across the economy, the strength of that spending is itself helping to fuel inflation.