New Federal Reserve data has shown that consumer borrowing increased in August, driven largely by non-revolving debt like auto and student loans.
The jump comes as many households continue to deal with higher prices and borrowing costs.
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According to the latest report, the increase followed a 3.4 percent rise in June.
In July, consumer credit increased at a seasonally adjusted annual rate of 4.2 percent.
According to the August Producer Price Index update, there was also a rise in inflation at the wholesale level.
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This new data from the Bureau of Labor statistics adds pressure on the federal reserve to increase interest rates next week.
Economists say consumer credit levels can offer a snapshot of how confident Americans feel about spending.
Experts largely blame the US war with Iran for the ongoing price hikes.
