The U.S. Commerce Department reported on Thursday that consumer prices have risen 5.7 percent over the past year. That’s the fastest pace in 39 years.
How much more are Americans spending? Consumer spending, which accounts for 70 percent of economic activity, rose by 0.6 percent in November—below the 1.4 percent surge in October. Higher prices may be partly to blame for November’s slower growth, but many economists say more Americans started their holiday shopping earlier this year.
The big jump in the Commerce Department’s price gauge resembled the hike in the consumer price index. It was up 6.8 percent for the 12 months ending in November, which was also the biggest surge in 39 years.
This story originally appeared in WORLD. © 2021, reprinted with permission. All rights reserved.