US consumer spending rebounds despite accelerating inflation
Al JazeeraConsumer spending jumped by 1.3 percent in October, double the 0.6 percent gained in September, the US Department of Commerce reported. United States consumer spending rebounded by a solid 1.3 percent in October despite inflation that during the past year has accelerated faster than it has at any point in more than three decades. Analysts said the solid increase in spending in October, the first month in the new quarter, was encouraging evidence that overall economic growth, which slowed to a modest annual rate of 2.1 percent in the third quarter, will post a sizable rebound in the current quarter, as long as the recent rise in COVID cases and concerns about inflation do not dampen holiday shopping. The 5 percent rise in consumer prices shown in Wednesday’s report continued a string of high readings during the past several months as demand outstrips supply, reflecting in part shortages due to snarled supply chains.