Consumer spending rises in October, inflation rises
Washington US consumer spending rebounded in October, up 1.3%, but inflation remains high, rising over the past year at the fastest pace in more than three decades.
The Commerce Department reported that the jump in consumer spending last month was double its 0.6% gain in September.
At the same time, consumer prices rose 5% compared to the same period last year, the fastest gain in 12 months since the same period ending in November 1990. This year’s price hikes have contributed to a 1.6% increase in spending in November, however, to adjust With inflation, spending rose 0.7% after the rate of inflation rose 0.3% in September.
Personal income, which provides fuel for future spending, rose 0.5% in October after declining 1% in September, a reflection of lower government support payments.
Consumer spending, which accounts for 70% of economic activity, is closely watched by economists who believe that strength in this area will lift the overall economy in the last three months of this year.
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