The U.S. consumer spending for January recovered massively on solid income, markets are worried as inflation picked up which means that Fed will likely maintain the hiked interest rates.

As reported by the Commerce Department on Friday, the US consumer spending edged up by1.8% January. December’s figures were updated to reflect a 0.1% decrease in spending, as opposed to the 0.2% decline that has been announced earlier.

While projections hovered around 1.3% surge based on a poll conducted by Reuters.

A robust labour market and strong consumer spending indicate that an economic downturn is unlikely.

After increasing by 0.2% in December, the personal consumption expenditures (PCE) price index surged by 0.6% last month. The PCE price index increased 5.4% in the twelve months that ended in January after increasing 5.3% in December.

Aside from food and energy, the PCE price index surged by 0.6% post jumping by 0.4% in December. The so-called core PCE price index increased 4.7% on a YOY basis in January after advancing 4.6% in December.