WASHINGTON, Nov 24 — Prices across the United States rose by five per cent last month compared to October 2020 as the wave of inflation accelerated, the government reported today.
The year-on-year increase in the Commerce Department’s personal consumption expenditures price index was its largest since November 1990 and above the 4.4 per cent change reported in September.
Incomes last month rose by a more-than-expected 0.5 per cent, while spending similarly exceeded analysts’ forecasts with a 1.3 per cent gain.
The report indicates that Americans are continuing to shop and see their incomes grow even as inflation rises at record rates, with the data showing energy prices up 30.2 per cent from October 2020 while food prices were 4.8 per cent higher.
The inflation acceleration occurred at the monthly level too, with the price index rising 0.6 per cent compared to September, in line with analysts’ forecasts.
Americans saw their incomes rise due to increasing wages and gains from assets, the data showed, indicating as well that the increase was undercut by the tapering of government benefit payments, likely due to the expiry of pandemic aid programs.
Consumers directed their spending towards both goods and services.
Much of the US$123.8 billion (RM521 billion) increase in goods spending went to motor vehicles and parts, while international travel was a components of the US$90.5 billion increase in services spending that was felt across sectors, the government said. — AFP