MercoPress. South Atlantic News Agency

US June inflation hits 0.8%, highest since February 1981

Consumer spending in the United States slowed in June, while inflation in June was the highest since 1981. Inflation-adjusted spending fell 0.2% in June, according to the US Commerce Department.

Inflation rose 0.8% in the month, which was the biggest increase since February 1981's reading of 1.0%. On Tuesday the Federal Reserve will announce its latest interest rates move with economists saying that inflation will make the decision tough. The Fed is expected to keep interest rates unchanged, but there will be much interest in whether its statement expresses concerns about rising prices, which have reduced the impact of the government's stimulus program of 168 billion US dollars. However in other economic news, the new orders received by US factories grew by 1.7% in June, which was much higher than had been expected. One of the biggest contributors was heavy demand for military equipment, which rose by 16.9%. There was also a 5.2% rise in orders for primary goods such as steel. The cash value of orders for refined petroleum products were also up, reflecting their increased prices.