Inflation-Adjusted Consumer Spending Falls as Prices Surged by Largest Amount Since 1981

The government says consumer spending, after adjusting for inflation, fell in June as shoppers were hit with the biggest increase in prices in nearly 3 decades. The Commerce Dept. reported recently consumer spending dipped by 0.2% in June, after removing the effects of higher prices, the poorest showing since a similar drop in Feb. The data show that higher prices reflected a big surge in gas costs and helped to drive an inflation gauge tied to consumer spending up by 0.8% in June, the biggest increase since a 1% rise in Feb. 1981. The big rise in inflation ate up a part of the billions of dollars in stimulus payments delivered in June.