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

Consumer spending in the United States picked up in May, despite inflation rising to its highest level in over three years, showing that American consumers are weathering the impact of the Iran war. Data released by the US Bureau of Economic Analysis on Thursday showed that the personal consumption expenditure price index in May increased by 4.1% compared to the same period last year, marking the largest increase since April 2023. Excluding food and energy prices, the core PCE price index rose by 3.4% year-on-year. Adjusted for inflation, consumer spending increased by 0.3% compared to the previous month. Another report showed that the US economy grew at an annual rate of 2.1% in the first quarter, a faster pace than the initially reported figure.