What US Consumer Spending Tells About Economy Status

US consumer spending Rose by 2.1% in January and Inflation accelerated amid Omicron wave. Commerce Department’s inflation gauge rose 6.1% from a year earlier.

As Russia’s attack on Ukraine helps push the price of oil to over $100 a barrel for the first time since 2014. Here’s how rising oil costs could further boost inflation across the US economy.

US consumer spending rose briskly in January and prices climbed faster, adding to other signs that the economy started the year on a solid footing despite the Omicron wave of Covid-19 infections.

But economists warned the conflict in Ukraine could curb growth in the coming months if it leads to higher gasoline prices. Spending rose a seasonally adjusted 2.1% in January from the previous month, rebounding from a revised 0.8% decline in December, the Commerce Department reported Friday.

Personal income was unchanged on the month, following the expiration of the federal government’s monthly child tax credit.