US consumer spending rises in June as inflation takes bigger bite

US consumer spending barely rose in June after falling in the prior month, underscoring how decades-high inflation has eroded Americans’ paychecks and tempered demand.

Purchases of goods and services, adjusted for changes in prices, increased 0.1% in June after a revised 0.3% drop a month earlier, Commerce Department data showed Friday. Spending on services and merchandise both crept higher.

The personal consumption expenditures price index, which the Federal Reserve uses for its inflation…