Inflation Is At A 30-Year High

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Food prices are soaring in Germany where the inflation rate currently stands at five percent
Food prices are soaring in Germany where the inflation rate currently stands at five percent

Inflation is at its highest rate since 1991 as supply chain issues continue to plague the U.S. economy, the Commerce Department reported. 

The Bureau of Labor Statistics reported on Wednesday a key measure of inflation rose 5% in October, the highest since November 1991. Prices for personnel consumption excluding food rose 4.1% from a year ago. The same inflation gauge grew 5.3% in the third quarter as it fell from 6.5% in the second quarter. 

The amount consumers spent rose 1.3% outpacing the projected 1% along with a 0.5% increase in personal income more than doubling the anticipated 0.2%. Energy costs rose 30.2% while food prices jumped 4.8%. Service inflation saw a 6.3% increase while goods inflation increased to 7.3%. 

Inflation negatively affected consumer sentiment as the new reading fell from 67.9 to 63.5.

Economist Richard Curtain says the decline was due to “rapidly increasing inflation and a lack of federal policies that would curb the inflation rate,” adding that the pandemic has been the cause of the recent economic struggles.  

Economic growth slowed over the summer but Chris Rupkey, chief economist at FWDBONDS LLC, says people should “give thanks for with a growth boom expected in the final quarter of the year.”

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