A measure of prices that is closely tracked by the Federal Reserve rose 5.8% last year, the sharpest increase since 1982, as brisk consumer spending collided with snarled supply…
(Newser) – A measure of prices that is closely tracked by the Federal Reserve rose 5.8% last year, the sharpest increase since 1982, as brisk consumer spending collided with snarled supply chains to raise the costs of food, furniture, appliances, and other goods. The report Friday from the Commerce Department also said that consumer spending fell 0.6% in December, per the AP. A wave of omicron cases discouraged many Americans from traveling, eating out, or visiting theaters and other entertainment venues. At the same time, incomes rose 0.3% last month, providing fuel for future spending. The inflation figure that the government reported Friday is its personal consumption expenditures index. Though the consumer price index is a better-known barometer, the Fed tends to track the PCE in setting its interest rate policies.
