US Consumer Spending Shows Resilience Despite Stubborn Inflation

US consumer spending rose in July by the most in four months, indicating resilient demand in the face of stubborn inflation.

Inflation-adjusted consumer spending rose 0.3%, according to Bureau of Economic Analysis data out Friday. The advance was boosted by income growth and driven by goods.

The so-called core personal consumption expenditures price index, which excludes food and energy items and is favored by the Federal Reserve, rose 0.3% from June. From the prior year, the gauge picked up to 2.9%, the most since February.

While a pickup in services costs underpinned the latest inflation figures, economists anticipate ...