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United States consumer spending up a modest 0.6% with inflation high

At the same time, a key inflation barometer that's closely followed by the Federal Reserve surged 4.4 percent last month from a year earlier — the fastest such increase in three decades

October 30, 2021 / 09:23 AM IST
Representative image

Representative image

American consumers slowed their spending to a gain of just 0.6 percent in September, a cautionary sign for an economy that remains in the grip of a pandemic and a prolonged bout of high inflation.

At the same time, a key inflation barometer that's closely followed by the Federal Reserve surged 4.4 percent last month from a year earlier — the fastest such increase in three decades.

And wages, a key component of inflation, jumped 0.8 percent — twice the August gain and a reflection of the growing ability of workers to compel higher pay from companies that are desperate to fill a near-record number of available jobs.

A separate report Friday showed that wages jumped 1.5 percent in the three months that ended in September, the most on records dating back 20 years.