Consumer spending was strong in August while inflation remained elevated

Shoppers look at school supplies at a Walmart in Dallas on August 12. LM Otero/AP

Americans ramped up their spending in August, despite elevated inflation, new data showed Friday.

Consumer spending rose 0.6% from July, according to Commerce Department data released Friday. That was above expectations for a 0.5% 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 0.3% on a monthly basis, which lifted the annual rate to 2.7% from 2.6%.

Inflation, as measured by the PCE price index, is at a six-month high.

Economists were expecting inflation to rise 0.3% from July and increase to 2.7% annually.