Consumer spending was strong in August while inflation remained elevated

(CNN) — Americans ramped up their spending in August; however, their costs of living were on the rise as food and other goods became even more expensive last month and services prices remained stubbornly high.

New economic data released Friday showed that consumer spending rose 0.6% in the key back-to-school shopping month of August, and 0.4% when adjusting for inflation. That’s further indication that a critical driver of the US economy continues to chug along despite broader uncertainty and a slowdown in the labor market.

Still, some prices — including those exposed to steep tariffs imposed by President Donald Trump — are rising faster than they have in months, according to Commerce Department data released Friday.

The Personal Consumption Expenditures price index — the inflation