Inflation soars in October, reaching its highest level since 1991.

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Inflation soars in October, reaching its highest level since 1991.

According to the Commerce Department, inflation is at its highest level since 1991, as supply chain concerns continue to affect the US economy.

On Wednesday, the Bureau of Labor Statistics revealed that a key gauge of inflation increased by 5% in October, the highest level since November 1991.

Prices for personnel consumption, excluding food, increased by 4.1 percent in comparison to the previous year. Inflation increased by 5.3 percent in the third quarter, down from 6.5 percent in the previous quarter.

Consumer spending increased by 1.3 percent, exceeding the forecasted 1 percent, and personal income increased by 0.5 percent, more than tripling the forecasted 0.2 percent. Energy costs increased by 30.2 percent, while food expenditures increased by 4.8 percent. Inflation in the service sector climbed by 6.3 percent, while inflation in the products sector increased by 7.3 percent.

Consumer mood has been badly impacted by inflation, with the new measure dropping from 67.9 to 63.5.

According to economist Richard Curtain, the drop was caused by “rapidly increasing prices and a lack of federal initiatives that would reduce the inflation rate,” and that the pandemic was to blame for current economic difficulties.

Despite the fact that economic growth slowed throughout the summer, Chris Rupkey, chief economist at FWDBONDS LLC, believes consumers can “give gratitude for with a growth boom forecast in the fourth quarter of the year.”

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