The US Commerce Department said consumer spending - more than two-thirds of economic activity - rose 0.3 per cent in June when a fall in car sales was offset by other spending.
The personal consumption expenditures (PCE) price index - a measure of consumer prices - rose 0.1 per cent in June as food and energy prices fell. The annual increase in "core" PCE was 1.6 per cent, from 1.5 per cent in May, reports BBC.
The data is released as the US Federal Reserve begins a two-day policy meeting amid expectations it could cut rates on Wednesday for the first time since 2008.