VIDEO: Consumer spending rose 6.8 percent

(NBC) - The personal consumption expenditures price index rose 6.8%, the biggest 12-month move since the 6.9% increase in January 1982.

There is more bad news for American consumers.

A key inflation gauge, tracked by the Federal Reserve, jumped to its highest 12-month gain in more than 40 years.

According to the Bureau of Economic Analysis, the personal consumption expenditures price index rose.

6.8 percent from a year ago, that's the biggest 12-month move since the 6.9 percent increase in January 1982.

And on a month-to-month basis from May to June, prices increased 1-percent.

That's the largest monthly gain since 2005.

The report comes after the latest GDP numbers showed two quarters of declining growth which could signal a recession.