WASHINGTON: Prices across the United States rose by five percent last month compared to October 2020 as the wave of inflation accelerated, the government reported Wednesday.
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 percent change reported in September.
Incomes last month rose by a more-than-expected 0.5 percent, while spending similarly exceeded analysts' forecasts with a 1.3 percent 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 percent from October 2020 while food prices were 4.8 percent higher.
The inflation acceleration occurred at the monthly level too, with the price index rising 0.6 percent 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.
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Consumers directed their spending towards both goods and services.
Much of the $123.8 billion increase in goods spending went to motor vehicles and parts, while international travel was a components of the $90.5 billion increase in services spending that was felt across sectors, the government said.
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