Holiday Spending Held Strong in November Despite Lingering Inflation

Americans kept spending through the start of the holiday shopping season, even as inflation continued to run above normal levels.

New data from the Commerce Department shows consumer spending rose half a percentage point in November. Income growth, however, didn't keep pace—rising just 0.3% over the same period.

The report also tracked the Personal Consumption Expenditures price index, the Federal Reserve's preferred measure of inflation. That gauge rose 0.2% month-over-month, bringing the annual inflation rate to 2.8%—unchanged from September.

The data release was delayed after a government shutdown that lasted all of October and the first 12 days of November.