Consumer Spending Rises 0.5% in November Amid Persistent Inflation - PCE Index at 2.8% Yearly

Consumer spending increased 0.5% in November, surpassing expectations, as holiday season activity boosted demand despite elevated prices, according to a delayed Commerce Department report released January 22, 2026. After adjusting for inflation, spending rose 0.3%. The Personal Consumption Expenditures (PCE) price index climbed 0.2% monthly, pushing the annual rate to 2.8%, aligning with Federal Reserve targets and economists’ forecasts. The data, which included previously unreleased October figures, highlighted continued inflationary pressure. Economists had anticipated a 0.2% monthly increase and a 2.8% yearly rate, per FactSet consensus. The report underscores resilience in consumer behavior amid high costs, though inflation remains above pre-pandemic norms.