U.S. consumer spending dips, inflation creeps up

U.S. consumer spending fell for the first time in a year in April after two months of solid gains, but the decline probably will not change expectations for a sharp rebound in economic growth this quarter.
While demand cooled last month, there are signs price pressures in the economy are stirring, with an inflation gauge rising at its quickest pace since November 2012.
The Commerce Department said on Friday consumer spending slipped 0.1 percent in April after rising by a revised 1.0 percent in March, which was the largest gain since August 2009.
Last month's decline was the first since April 2013. Spending, which accounts for more than two-thirds of U.S. economic activity, was previously reported to have increased 0.9 percent in March and economists had expected it to rise 0.2 percent in April.
"Given the relatively upbeat picture described by both consumer confidence and labor market statistics, we would not read too much out of today's decline in consumer spending," said Annalisa Piazza, an economist at Newedge Strategy.
U.S. stock index futures slipped on the data, while prices for U.S. Treasury debt extended gains, according to Reuters.