U.S. consumer spending edges up, inflation retreats

U.S. consumer spending rose marginally in February and overall inflation retreated, suggesting the Federal Reserve will continue to gradually raise interest rates this year despite a tightening labor market. The Commerce Department said on Monday that consumer spending edged up 0.1 percent after a downwardly revised 0.1 percent gain in January. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, was previously reported to have increased 0.5 percent in January.