WASHINGTON—U.S. consumer spending fell for a second straight month in December amid renewed business restrictions to slow the spread of COVID-19 and a temporary expiration of government-funded benefits for millions of unemployed Americans. The report from the Commerce Department on Jan. 29 also showed inflation steadily rising in December. Expectations that inflation would perk up this year were supported by other data showing a solid increase in labor costs in the fourth quarter. But a rise above the Federal Reserve’s 2 percent target, a flexible average, is unlikely to worry policymakers. The U.S. central bank is expected to maintain its ultra-easy monetary policy stance for a while as the economy battles the pandemic. Excess capacity remains throughout the economy, which could limit companies’ ability to raise prices. “The Fed would like inflation to average 2 percent, so it would like inflation to temporarily move above 2 percent,” said Gus Faucher, …