**Consumer Spending Dips Amid Inflationary Pressures**

**With inflation at a 40-year high, consumers are tightening their purse strings.**

**Key Takeaways:**

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Consumer spending increased by only 0.1% in July, well below the expected 0.5%.

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The personal consumption expenditures (PCE) price index rose 6.3% year-over-year, the highest since 1982.

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The Federal Reserve is expected to continue raising interest rates to combat inflation.

The latest data from the Bureau of Economic Analysis shows that consumer spending increased by only 0.1% in July, well below the expected 0.5%. This is a sign that consumers are starting to feel the pinch of inflation, which is at a 40-year high.

The personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, rose 6.3% year-over-year in July. This is the highest reading since 1982.

The Federal Reserve is expected to continue raising interest rates to combat inflation. This will make it more expensive for businesses to borrow money, which could lead to slower economic growth and job losses.

**What this means for consumers:**

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Consumers should expect to pay more for goods and services in the coming months.

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Interest rates on credit cards and loans are likely to rise.

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Consumers should consider cutting back on spending and saving more money.

Consumers should be aware of the potential impact of inflation on their finances and make adjustments accordingly.

**Additional resources:**

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Bureau of Economic Analysis: Personal Consumption Expenditures

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Federal Reserve: Federal Open Market Committee