US consumer spending cools as inflation heats up

0 Comments | AFP, August, 2008

WASHINGTON (AFP) — US consumer spending cooled in June and inflationary pressures accelerated strongly as higher food and energy costs stretched Americans' wallets, a government survey showed Monday.

The monthly Commerce Department snapshot also showed that Americans' incomes moderated in June after both spending and income got a hefty boost in May from a vast emergency economic stimulus.

The survey was released a day before a Federal Reserve panel meets to mull US interest rates.

The central bank panel is widely expected to leave its key base rate firmly anchored at 2.0 percent, although economists said inflation risks may trigger a hot debate.

Consumer spending rose 0.6 percent in June from May while incomes rose a mild 0.1 percent, marking the...