US Consumer Spending Rose 4.5 Percent Year-Over-Year in August 2026 Despite Inflation Pressures, Bank of America Card Data Shows Households Seeking Value at Big-Box Retailers

US consumer spending remained solid in August 2026, with total card spending per household rising 4.5 percent year-over-year and 0.9 percent month-over-month, according to Bank of America internal data published in the bank's September 2026 Consumer Checkpoint report. The spending growth marks a continuation of resilient consumer demand despite persistent above-target inflation and rising interest rates, with discretionary services providing a steady foundation for growth even as some categories moderated. Consumers appear focused on value, with spending at general merchandise and big-box retailers continuing to outperform traditional retailers during the back-to-school season, suggesting households are actively seeking lower-cost alternatives while maintaining overall spending levels. Household finances remain healthy, with credit card utilization declining across most age and income cohorts. Spending and wage growth have largely converged across income groups, though the largest divergence remains among Millennials. The August spending data comes as the Federal Reserve begins its two-day policy meeting Tuesday, with markets pricing in a 92 percent probability of a 25 basis point rate hike Wednesday. The resilient consumer spending backdrop complicates the Fed's inflation fight, as strong demand continues to support price pressures even as energy costs surge and Treasury yields hit 19-year highs.