Americans kept spending last month despite elevated inflation

US consumers kept spending in July, even as inflation remained elevated that month, new data showed Friday.

Consumer spending rose 0.5% from June, according to Commerce Department data released Friday. That’s slightly below expectations for a 0.6% bump, according to FactSet consensus estimates.

The Personal Consumption Expenditures price index — the inflation gauge the Federal Reserve uses for its 2% target rate — rose 0.2% on a monthly basis, which kept the annual rate at 2.6%.

Economists were expecting inflation to rise 0.2% from June and hold pat at 2.6% annually.