Commerce report: Prices and spending continued to increase

NEW BRITAIN, Conn. (WFSB) - Holiday lights are twinkling across the state tonight as several towns held their tree-lighting ceremonies.

From Wethersfield, to New Britain, to West Hartford, hundreds showed up to watch and many of them shopped for those perfect gifts.

But those gifts may be a lot pricier this year as the latest commerce report says prices and spending continued to increase in October.

Experts say inflation has improved but there is still a long road ahead and we should be cautious with our spending.

“I did a lot of Cyber Monday and now I did a little Crate and Barrell and make my way around to some shops still opened,” said Lauren Lafferty, West Hartford.

The latest report shows spending increased from September to October despite the high prices, but some businesses in New Britain aren’t seeing that income come in.

“A good number of people don’t have disposable income. So they can’t necessarily buy the fun things to put on the walls or the fancy lamps,” said Liz Burton, Something Beautiful Shop, New Britain.

Experts say it’s a complicated economy, especially with the latest government report showing prices in October increased by 6%.

Senior Lecturer Brian Marks says the Fed might not increase interest rates as much next time, which could be some good news as they try to control inflation.

“This particular is what the Fed will examine when determining what to do with interest rates. Now it’s not the only number the Fed will look but this number shows a slight moderation in rising prices from the previous number of 6.3%,” said Marks.

With people spending more despite the high prices, Marks says be careful with dipping into your savings which reports show many people are doing.

Marks adds 2023 could get even more complicated, with the uncertain economy and job market.

“Pick your priority. And maybe your favorite uncle or aunt will be the one you buy for and maybe the not-so-fav uncle you may hold back and send a card this year,” said Marks.

When it comes to the economy, tomorrow will be another big day as the latest job report is released.

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