NEW YORK (Bloomberg) — Consumer spending in the US increased more than forecast in February, reflecting higher gasoline prices that left Americans with less cash for other goods. A measure of inflation accelerated.The 0.6 percent gain in spending followed a 0.5 percent January increase, the Commerce Department said today in Washington. The Federal Reserve’s preferred measure of inflation rose 0.3 percent, the most since August, after rising 0.2 percent a month earlier.

Spending adjusted for price changes rose at the slowest pace since August, diminishing prospects for faster growth in an economy already weakened by the slump in housing, economists said. Elevated inflation gives Fed policy makers less room to manoeuvre on interest rates as growth slows.

“Gasoline prices could be a drag on consumer spending,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York. “Income gains will keep pushing the consumer forward, but they’ll go forward with the parking brake on.”

Adjusted for inflation, spending rose 0.2 percent after rising 0.3 percent the prior month, the report showed.

Incomes in February rose 0.6 percent after a 1 percent gain a month earlier. January figures were boosted by bonus payments and gains from stock options exercised at the start of the year, the Commerce Department said.

Economists had forecast a 0.3 percent rise in spending, which accounts for two-thirds of the economy, according to the median of 74 estimates in a Bloomberg News survey. Estimates ranged from no gain to a 0.5 percent rise.

The report’s price gauge tied to spending patterns and excluding food and energy costs, the Fed’s preferred measure, increased 2.4 percent from February 2006, compared with January’s 2.2 percent increase.