WASHINGTON (AP) — Consumer spending increased in July at the fastest pace in three months, while incomes grew by the largest amount since February, both encouraging signs for future economic growth.

The Commerce Department says that consumer spending rose 0.3 percent in July, the best showing since April. It followed 0.2 percent advances in both May and June.

Incomes in June grew 0.4 percent, the best showing since February. The strength came from a strong 0.5 percent rise in wages and salaries, reflecting the healthy 209,000 gain in employment in July.

A key inflation gauge favored by the Federal Reserve posted a tiny 0.1 percent increase in July. Over the past 12 months, it is up just 1.4 percent, still well below the Fed's 2 percent target.