Economics
U.S. Inflation-Adjusted Spending Stagnates as Prices Surge
- Fed’s preferred price gauge posts biggest rise since 1982
- Savings rate declines to lowest level in almost four years
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U.S. consumer spending, adjusted for inflation, stagnated in November as the fastest price gains in nearly four decades eroded purchasing power.
Purchases of goods and services, after adjusting for higher prices, were little changed following a 0.7% gain in October, Commerce Department figures showed Thursday. Unadjusted for inflation, so-called nominal spending rose 0.6%, matching the median estimate of economists.