Money

Actions

Consumers defy inflation to support economy. For how long?

Inflation
Posted

WASHINGTON (AP) — With prices across the economy soaring at their fastest pace in decades, you might think Americans would tap the brakes on spending. Not so far.

Consumers as a whole are showing surprising resilience, not only sustaining their spending but increasing it even after adjusting for inflation.

That spending is helping allay concerns that a recession might be near.

Yet there are signs that some people, especially in lower-income households, are starting to cut back.

How long consumers as a whole continue to spend at healthy levels despite the pressures from inflation will be key to whether the U.S. can avoid a recession as the Federal Reserve raises borrowing rates.



,

Weather

Daily Forecast

View Hourly Forecast

Day

Conditions

HI / LO

Precip

Tuesday

07/01/2025

Clear

-° / 73°

0%

Wednesday

07/02/2025

Clear

103° / 73°

0%

Thursday

07/03/2025

Clear

102° / 69°

0%

Friday

07/04/2025

Clear

96° / 67°

0%

Saturday

07/05/2025

Clear

96° / 68°

0%

Sunday

07/06/2025

Clear

99° / 70°

0%

Monday

07/07/2025

Clear

101° / 71°

0%

Tuesday

07/08/2025

Clear

102° / 72°

0%