Americans are spending but inflation casts pall over economy

People shop for frozen turkeys for Thanksgiving dinner at a grocery store in Mount Prospect, Ill., Wednesday, Nov. 17, 2021. First, the good news: There is no shortage of whole turkeys in the U.S. this Thanksgiving. But those turkeys - along with other holiday staples like cranberry sauce and pie filling - could cost more. (AP Photo/Nam Y. Huh)

WASHINGTON (AP) - Americans are doing the main thing that drives the U.S. economy - spending - but accelerating inflation is casting a pall.

A raft of economic data issued Wednesday showed the economy on solid footing, with Americans' incomes rising and jobless claims falling to a level not seen since the Beatles were still together.

The spike in prices for everything from gas to rent, however, will likely be the chief economic indicator Americans discuss over Thanksgiving Day dinner.

The Commerce Department reported that U.S. consumer spending rebounded by 1.3% in October. That was despite inflation that over the past year has accelerated faster than it has at any point in more than three decades.

The jump in consumer spending last month was double the 0.6% gain in September.

At the same time, consumer prices rose 5% compared with the same period last year, the fastest 12-month gain since the same stretch ending in November 1990.

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