Sept. 26 (UPI) — Core inflation stayed about the same in August, the Federal Reserve said, and personal consumption expenditures had a 0.3% gain for the month.

The personal consumption expenditures price index rise made the annual headline inflation rate 2.7%, which is the inflation over last year, the Commerce Department reported.

The core inflation rate is at 2.9%. It rose 0.2% for the month.

Meanwhile, consumer sentiment fell to 55.1, the University of Michigan said in a survey released Friday. The report was the seventh-lowest on record since 1952.

The pessimism stems from fears of higher inflation, which could get worse. On Thursday, President Donald Trump announced new tariffs on trucks, cabinets and pharmaceuticals.

Americans are now also becoming nervous about the labor market.

“Consumers continue to express frustration over the persistence of high prices, with 44% spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year,” Joanne Hsu, the Michigan survey’s director, said in a release.

“Interviews this month highlight the fact that consumers feel pressure both from the prospect of higher inflation as well as the risk of weaker labor markets,” she said.

Consumer spending is still going strong. Personal consumption expenditures climbed 0.6% in August from the previous month, the Commerce Department said Friday.

After adjusting for inflation, spending rose 0.4% last month. The personal saving rate, which is personal saving as a percentage of disposable personal income, was 4.6%.

“Recent data show consumers resumed spending over the summer, especially those with higher incomes. And why wouldn’t they? Unemployment is still low, nominal wages are still increasing and asset valuations are near all-time highs,” CNN reported Richmond Fed President Tom Barkin said Friday at an event in Washington, D.C.

Stock market futures rose after the report, while Treasury yields dipped, CNBC reported.

“Net, net, consumers literally hit it out of the park with very strong gains in spending not just for August, but June and July as well,” Chris Rupkey, chief economist at Fwdbonds, told CNBC.

“Summer was the time for consumer revenge spending after hunkering down in retreat from the shops and malls during the uncertainty and fear produced by the White House tariff rollout in April and May.”