US Consumer Spending Rose 2.1% in January and Inflation Accelerated Amid Omicron Wave

US consumer spending rose briskly in January and prices climbed faster, adding to other signs that the economy started the year on a solid footing despite the Omicron wave of Covid-19 infections. But economists warned the conflict in Ukraine could curb growth in the coming months if it leads to higher gasoline prices.

Spending rose a seasonally adjusted 2.1% in January from the previous month, rebounding from a revised 0.8% decline in December, the Commerce Department reported Friday. Personal income was unchanged on the month, following the expiration of the federal government’s monthly child tax credit.