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October recovery in consumer spending, rising inflation | WGN Radio 720

People buy frozen turkeys for Thanksgiving dinner at Mount Prospect’s grocery store on Wednesday, November 17, 2021. First, the good news. This Thanksgiving is full of turkeys in the United States. However, these turkeys, along with other holiday staples such as cranberry sauce and pie stuffing, can cost more. (AP photo / Nam Y. Huh)

Washington (AP) — US consumer spending rebounded in October, showing a solid 1.3% rise, but inflation continues to rise, rising at the fastest pace in more than 30 years in the past year. I am.

The Commerce Department reported on Wednesday that last month’s surge in consumer spending was double that of September’s 0.6% increase.

At the same time, consumer prices rose 5% compared to the same period last year, the fastest 12-month increase since the same period ended in November 1990. Soaring prices this year contributed a 1.6% rise in spending in November. Still adjusting for inflation, spending remained strong 0.7% after an inflation-adjusted increase of 0.3% in September.

Personal income, which will drive future spending growth, fell 1% in September and then rose 0.5% in October, reflecting a decline in government funding.

Private consumption, which accounts for 70% of economic activity, is carefully watched by economists who believe that power in this area will boost the economy as a whole in the last three months of this year.

October recovery in consumer spending, rising inflation | WGN Radio 720

Source link October recovery in consumer spending, rising inflation | WGN Radio 720

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