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Consumer Prices up 5.7% over past Year, Fastest in 39 Years

U.S. consumer prices rose 5.7% over the past year, the fastest pace in 39 years, as a surge in inflation confronts Americans with the holiday shopping season underway.

The November increase, reported Thursday by the Commerce Department, followed a 5.1% rise for the 12 months ending in October, and kept up a trend of annual price gains running well above the 2% inflation target set by the Federal Reserve.

Thursday’s report showed that consumer spending, which accounts for 70% of economic activity, rose 0.6% in November, a solid gain but below the 1.4% surge in October.

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