Consumer spending rebounds in October, inflation elevated | KSTP.com

Consumer spending rebounds in October, inflation elevated

People shop for frozen turkeys for Thanksgiving dinner at a grocery store in Mount Prospect, Ill., Wednesday, Nov. 17, 2021. First, the good news: There is no shortage of whole turkeys in the U.S. this Thanksgiving. But those turkeys — along with other holiday staples like cranberry sauce and pie filling — could cost more. Photo: AP Photo/Nam Y. Huh. People shop for frozen turkeys for Thanksgiving dinner at a grocery store in Mount Prospect, Ill., Wednesday, Nov. 17, 2021. First, the good news: There is no shortage of whole turkeys in the U.S. this Thanksgiving. But those turkeys — along with other holiday staples like cranberry sauce and pie filling — could cost more.

Associated Press
Created: November 24, 2021 09:30 AM

U.S. consumer spending rebounded in October, rising by a solid 1.3%, but inflation remains elevated, rising over the past year at the fastest pace in more than three decades.

The jump in consumer spending last month was double the 0.6% gain in September, the Commerce Department reported Wednesday.

At the same time, consumer prices rose 5% compared with the same period last year, the fastest 12-month gain since the same stretch ending in November 1990. The surge in prices this year contributed to the 1.6% rise in spending in November, yet adjusting for inflation, spending was up a still-solid 0.7% after a 0.3% inflation-adjusted gain in September.

Personal incomes, which provide the fuel for future spending increases, rose 0.5% in October after having fallen 1% in September, a reflection of a drop in government support payments.

Consumer spending, which accounts for 70% of economic activity, is being closely watched by economists who believe strength in this area will lift the overall economy in the final three months of this year.


(Copyright 2021 by The Associated Press. All Rights Reserved.)

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