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Core inflation rose 3.6% in August, its biggest jump in 30 years

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Core inflation rose 3.6% in August, its biggest jump in 30 years
Jackson Financial rings the opening bell at the New York Stock Exchange on Wall Street in New York City on Monday. Photo by John Angelillo/UPI | License Photo

Oct. 1 (UPI) -- Supply chain disruptions and high demands have led to the largest inflation jump in 30 years during August, according to a Friday report by the Commerce Department.

Personal expenditure rose 0.8% in August from the same time a year ago while personal consumption was up 3.6% from last year. Estimates originally showed an increase of 0.2% monthly increase in personal consumption and 3.5% annual increase.

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Energy prices soared by 24.9%, food prices rose 2.8%, goods increased by 5.5% and services jumped by 3.6%.

Personal income increased only 0.2% for the month, but its value is falling as inflation rises. Personal savings are diminishing: A total of $1.71 trillion in savings reflects a 9.4% rate, which is lower than 10.1% in July.

Savings peaked in April 2020 during the early days of the pandemic when businesses were shut and government handed out direct payments.

Manufacturing continues to rise with 61.1% of companies seeing expansion. Though order backlogs have dropped, delays are still happening nationwide. Supply chain disruptions are not expected to slow soon.

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