U.S. News
STRONG GROWTH, STUBBORN INFLATION: THE ECONOMY HANDS VOTERS A MIXED BAG DAYS BEFORE THE MIDTERMS
The economy grew at a 3.4% annual rate in the third quarter, but consumer prices rose 3.6% from a year earlier — a split picture landing less than a week before Election Day.
U.S. economic growth was notably strong from July to September, yet inflation accelerated at the same time, new data showed Thursday, according to the Associated Press.
The economy grew at a 3.4% annual rate in the July–September quarter, much faster than the 2.2% growth in April–June, with consumer spending climbing 3.8% at an annual rate.
Consumer prices rose 3.6% in September from a year earlier, up from 3.4% in August, and climbed 0.5% from August to September, the highest monthly figure since May.
Rising gas prices drove much of the increase, with the average gallon at $4.23 on Thursday, 39% more than a year earlier, while after-tax incomes adjusted for inflation slipped from August to September and the savings rate fell to 3.8%, its lowest in four years.
The mixed picture arrives days before voters decide control of Congress, with affordability dominating the campaign's final stretch.
Reporting: Associated Press
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