Consumer spending picked up sharply in March, positioning American households to help propel the economy heading into the second quarter of the year.

Personal consumption expenditures increased a seasonally adjusted 1.1% in March from the prior month, the Commerce Department said Friday. Consumers stepped up spending on services like travel and dining, as well as on goods like gasoline and food. Spending on durable goods declined for the second month in a row, led by lower spending on vehicles.

Personal income, a measure that includes wages and government assistance, climbed 0.5% from the prior month. That was a slower rise than overall inflation, which increased 0.9% on the month in March.

Overall inflation, as measured by the Commerce Department, rose 6.6% in March from a year earlier, an acceleration from February, but when excluding volatile food and energy costs, annual inflation cooled slightly, rising 5.2% last month from a year earlier.... Read More: WSJ