Inflation is alive and well in America…
Rosey Economy proclamations be damned…..
U.S. consumer prices rose 5.7% over the past year, the fastest pace in 39 years, as a surge in inflation confronts Americans with the holiday shopping season under way.
The November increase, reported Thursday by the Commerce Department, followed a 5.1% rise for the 12 months ending in October, continuing a string of annual price gains that have run well above the 2% inflation target set by the Federal Reserve.
Consumer spending, which accounts for 70% of U.S. economic activity, rose 0.6% in November, a solid gain but below the 1.4% surge in October.
“Consumers spent with less enthusiasm in November as they shifted their holiday shopping to earlier in the season and continued to contend with escalating prices and reduced product availability,” said Kathy Bostjancic, chief U.S. financial economist at Oxford Economics.
Personal incomes, which provide the fuel for future spending increases, rose 0.4% in November, slightly lower than the 0.5% increase in October. Both gains came after a 1% plunge in incomes in September, the month that government benefit programs such as expanded unemployment benefits came to an end.
The big jump in the Commerce Department’s price gauge was similar to the rise in the consumer price index, up 6.8% for the 12 months ending in November, also the biggest surge by this measurement in 39 years….