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Personal spending rose 1.3% last month, according to new data from the Commerce Department on Wednesday, a sign that consumers are continuing to spend more despite high inflation, at its fastest pace in three decades. is growing.

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According to the latest personal consumption expenditure price index, prices rose 5% through October, the sharpest gain in 30 years. report good,

Inflation is rising at its fastest pace in three decades, data shows: October’s annual jump in prices is higher than the previous month, which saw prices rise by 4.4% for the year since September.

Despite the lingering Covid-19 pandemic, investor fears about inflation due to slack in stimulus payments and ongoing supply chain issues, consumer demand remained stagnant amid rise in private wages and salaries, Commerce Department report said. happened.

According to the data, personal consumption expenditure – a key measure of consumer spending – rose 1.3% in October, while personal income rose 0.5%.

Both measures of consumer power had risen sharply in recent months: elevated spending levels ahead of the busy holiday season could help fuel a macroeconomic recovery, experts say.

The increase in personal spending comes as Americans benefit from larger wage increases and healthier household balance sheets, especially after several rounds of government stimulus, according to the report.

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