Inflation is at its highest level 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 accelerated 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.


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