US Household Spending Jumped More than Twice as Fast as Incomes Last Year

US household spending rose more than twice as fast as incomes last year, with consumers splashing out on food and entertainment after pandemic lockdowns eased, according to data published Thursday by the Bureau of Labor Statistics.

The average income per consumer unit, before taxes, rose 3.7% to $87,432 in 2021 while spending jumped 9.1% to $66,928, the BLS said in its annual study of expenditures. A consumer unit is a family or other household group that shares its finances. Inflation over the period averaged 4.7%, the BLS said. That means incomes failed to keep up with the rising cost of living while spending outpaced it.