Although prices have skyrocketed, US consumers are spending more and more | Business and Economic Affairs

Prices in the United States may have risen to 30 years in October, but that did not deter consumers from storming last month as Americans began to jump over holiday shopping.

Sales at retail stores, online and in the world’s richest restaurants rose 1.7 percent in October compared to last month, the U.S. Department of Commerce said Tuesday. This was the biggest gain since March and is the third straight month of rising retail sales.

Compared to the same period last year, retail and food sales rose 15.4 percent in October.

Supply of supply chains and a shortage of raw materials by workers have been raising prices this year for US businesses, which have also been sending the money to American consumers.

Last month, consumer prices in the US rose 6.2 percent from the same period last year, the U.S. Department of Labor reported, showing a sharp rise in consumer prices over the past three decades.

This is very important for US economic health because consumer spending drives two-thirds of the country’s growth. And some are concerned that rising inflation could undermine the US economy.

Consumers tend to spend more money when they have more confidence in the economy and their financial security. Rising inflation and the feeling that it is not enough to meet this have helped keep US consumer confidence low for 10 years in November, the University of Michigan said in a recent study.

But with U.S. families still spending more than $ 2.5 trillion collected on the coronavirus, Americans spent more quickly than they expected in October.

“Covid’s success, reducing traffic congestion and starting to buy any vacation that has increased over the last month,” Oxford Economics Chief Economist US Gregory Daco said in a customer letter. “Homeowners were willing to open their wallets because of rising prices – which raised sales figures – but there is ample evidence that rising inflation is undermining purchasing power.”

Although rich families have more money to reduce inflation, low-income families suffer the most. Consumers can respond at higher rates by delaying the purchase of non-essential items, but there is no suspension of essential items such as table food, petrol, heat, and ceiling.

Consumption of food alone disrupted 27 percent of household income for low-income Americans last year, according to the US Department of Agriculture.

One way consumers can respond to high prices is by exchanging purchases with cheaper options.

The brand – and the world’s largest retailer, Walmart, known for its high prices, said Tuesday that its online retail and retail sales in its U.S. stores opened at least a year up 9.2 percent in its third quarter ending October 29, despite revenue. went up. The giant also said it had played a major role in the US market and that more consumers are returning to its stores.

While consumers are looking for promotions to cope with rising prices, experts are still seeing the economy thrive, with rising wages, rising labor market growth, and a reduction in COVID-19 infections and restrictions.

“As the economy moves into 2022, health reforms must reaffirm consumer confidence while promoting job recovery and greater gains should contribute to financial growth,” Daco said.