Supply chain disruptions and high demands have led to the largest inflation jump in the United States in 30 years during August, according to a Friday report by the Commerce Department.
Personal expenditure rose 0.8 percent in August from the same time a year ago while personal consumption was up 3.6 percent from last year. Estimates originally showed an increase of 0.2 percent monthly increase in personal consumption and 3.5 percent annual increase.
Energy prices soared by 24.9 percent, food prices rose 2.8 percent, goods increased by 5.5 percent and services jumped by 3.6 percent.
Personal income increased only 0.2 percent 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 percent rate, which is lower than 10.1 percent 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 percent of companies seeing expansion. Though order backlogs have dropped, delays are still happening nationwide. Supply chain disruptions are not expected to slow soon.