The Commerce Department reports Friday that annual inflation rose in September at the fastest rate in over 30 years despite an increase in personal income.

As measured by personal consumption expenditures price index, which includes food and energy, headline prices increased 0.3% in the month. This pushed the year-overyear growth to 4.4%. This is the highest pace recorded since January 1991.

The inflation rate rose 0.2% per month, according to Dow Jones estimates, and 3.6% over the 12-months, which is the same as August. However, it was the highest level since May 1991.

Inflation continued to rise as September saw personal income decline 1%, which was more than the 0.4% expected drop. According to Wall Street estimates, consumer spending rose 0.6%.

The Labor Department also reported that compensation costs rose 1.3% in Q3, surpassing the 0.9% estimate. This resulted in a 3.6% year-over-year rise, which was slightly more than Q1 but also the fastest acceleration since 2002’s second quarter.