Consumption in the US grows despite accelerating inflation

Inflation in the United States is rampant, but statistics show that citizens’ pockets are ready and willing to spend.

Consumer prices continued to rise in October in the United States with an increase of 5% in the last 12 months, according to the Personal Consumption Expenditure Price Index (PCE), prepared by the Department of Commerce. from that country.

Compared with the previous month, the prices of products and services had an increase of 0.6 percent.

The PCE index, which measures price increases based on personal consumption, is the highest since November 1990 and was well above the 4.4% annual reported in September.

Statistics show that energy prices have risen 30.2% since October 2020, while food prices rose 4.8%.

This data reinforces the calculations released in early November by the United States Bureau of Labor Statistics in which it estimated a variation of 6.2% for the Consumer Price Index for October.

Consumers take out their wallets

The report prepared by the Department of Commerce indicates that Americans buy helped by higher income, although inflation reaches record figures.

The amount of purchases made by consumers increased more than expected in October. Households bought vehicles and other goods, still showing no signs of restraint due to high inflation and boosting the economic outlook at the beginning of the fourth quarter.

Consumer spending, which accounts for more than two-thirds of US economic activity, grew 1.3% last month, after rising 0.6% in September.

Americans’ incomes were helped by higher wages and rental earnings, according to official data.

Results were driven in part by higher prices as demand continues to outpace supply.

Consumer spending is picking up after slowing sharply in the third quarter due to a resurgence of Delta-variant infections and a widespread product shortage.

Fears that shelves are empty and having to pay even more for scarce items have encouraged Americans to start their Christmas shopping early. Stores expect better sales, but economists warn of risks.

Covid-19 infections are on the rise again, which could lead some consumers to cut back on travel and leisure spending, including dining out.

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