U.S. consumer spending unexpectedly fell in August for the first time in seven months while inflation showed signs of accelerating, mixed signals that could keep the Federal Reserve cautious about raising interest rates. The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, fell 0.1 percent last month after accounting for inflation. Yields on U.S. government debt fell after the data and the dollar weakened against a basket of currencies, signaling investor doubts about the prospect of a near-term Fed rate increase.

By Katy Migiro NAIROBI (Thomson Reuters Foundation) - The United Nations has appointed its first special envoy for Somali refugees to ensure they receive protection, following accusations by a rights group that Kenya has been forcing them out of the world's largest refugee camp in a bid to close it. Kenya, which says the returns are voluntary, called last week at the U.N. General Assembly for more funding to repatriate more than 300,000 Somali refugees living in Dadaab camp on its northern border. "The Special Envoy will first help to maximise efforts to search (for) solutions for Somali refugees and asylum seekers at national and regional level and strive to enhance dialogue... to help maintain asylum," the U.N. said in a statement on Friday.