The prices Americans are paying for goods continue to soar; The new consumer image the federal government uses most to measure inflation hits a 30-year high

The consumption measure that the federal government uses most to track inflation has hit a three-decade high.

“According to the Bureau of Economic Analysis, the Personal Consumption Spending Price Index – which the central bank uses to inform monetary policy decisions – hit an annual rate of 4.1% in October. ,” Daily Wire Friday report.

CNBC add:

Along with the price increase, the amount of consumer spending also increased, up 1.3% on the month, above the 1% estimate. That came with a 0.5% increase in personal income, well ahead of the 0.2% estimate.

Inflation continues to be most reflected in soaring energy costs, which rose 30.2% from a year ago, while food prices rose 4.8% during the period. Services inflation increased by 6.3% from September, while goods inflation increased by 7.3%, up from 6.4% in the previous month.

And, as Business Insider explain more:

The Fed and the Biden administration have expected price growth to soften as the economy normalizes. However, obstacles in the recovery process have kept prices soaring at historic rates.

The reopening has spurred spending increases as Americans deploy pent-up savings. A wave of demand quickly overwhelmed inventories across the United States, and manufacturers were left with large backlogs and a damaged supply chain.

With little supply available to serve the profligate demands of shoppers, businesses have raised prices.

After nearly two years of using aggressive measures related to monetary policy in the wake of the COVID-19 pandemic and widespread shutdown, the Federal Reserve said it would ease its bond purchases.

Earlier this month, Fed policymakers noted that they would reduce the central bank’s $120 billion monthly asset purchases by $15 billion this month and next.

Some economists, however, said they expect the Fed to push for further quantitative easing.

“They’re picking up a deceleration in December and now it looks like growth could easily pass 6% and possibly hit 7% in Q4,” said Grant Thornton chief economist Diane Swonk. CNBC. “The economy is strong and hot. It’s not a bad thing. It was an explosion. You cannot escape it. The Fed has to adjust.”

“If they want any distance between deceleration and takeoff, they need to stay away from it. It’s justifiable. We have a strong economy,” she predicted.

Last week, President Biden upset the party’s far-left base when he re-nominated Federal Reserve Chairman Jerome Powell, who was appointed President Trump for the first time, to a second term.

“When our country was experiencing job losses last year and there was panic in our financial markets, Jay’s steady and decisive leadership helped stabilize markets and bring our economy to life. We have a strong recovery,” Biden said in a statement.

“Jay is a believer in the benefits of what economists call ‘maximum employment.’ It is an economy in which companies compete to attract workers instead of workers competing with each other for jobs, where American workers receive steady increases in wages after decades of stagnation, and where the benefits of economic growth are shared widely for everyone in the country, rather than just being concentrated among those at the top,” he added.