U.S. inflation-adjusted consumer spending rose 0.6% month-over-month in August, the largest monthly increase since March 2025. Meanwhile, the Federal Reserve's preferred inflation gauge climbed 0.3% month-over-month, with the core PCE price index increasing by just 0.2%. Resilient consumer demand coupled with slowing underlying inflation complicates the Federal Reserve's decision on whether to raise interest rates again in October.