WASHINGTON (Reuters] – U.S. consumers spent more in October than anticipated as they bought vehicles and a variety of goods. The increase in consumer spending is proving to be a positive sign for the economy and a boost to the outlook in the first quarter.

On Wednesday, the Commerce Department reported that U.S. consumer spending, which account for over two-thirds U.S. economic activity increased 1.3% in October after rising 0.6% last September. Higher prices partly fueled spending as the demand for goods and services continues to exceed supply.

Reuters polled economic experts and forecast 1.0% growth in consumer spending.

Inflation has been triggered by the simultaneous recovery of global economies from COVID-19, which was fueled in part by billions of dollars worth relief money from governments.

On Tuesday, President Joe Biden declared that 50 million barrels crude oil would be released from the U.S. Strategic Petroleum Reserve. This was in conjunction with China, India and South Korea.

After slowing in the last quarter, consumer spending has been increasing. This is due to a rise in COVID-19-related infections caused by the Delta variant of COVID-19. Americans are encouraged to shop for holiday gifts early because they fear empty shelves or paying more for rare goods.

While retailers anticipate holiday sales to be at their best for years, economists caution against the negative consequences of this optimistic outlook. Coronavirus infections continue to rise, prompting some consumers not to spend as much on travel or entertainment.

Scott Anderson, chief of supply, said, “Moreover, continuing clogged supplies chains and port delays could result in product scarcities at shelves as cargo ships remain anchor offshore waiting for unloading at the large ports located in Southern California.”

Bank of the West, San Francisco.

“Both of these scenarios can put a damper upon the optimistic holiday sales projections.”

In October, price pressures grew. After gaining 0.2% last September, the personal consumption expenditures price index (PCE), increased 0.4%. The so-called core PCE index price rose 4.1% in the twelve months to October. It followed an increase of 3.7% in September.

Core PCE price is the Federal Reserve’s preferred inflation measurement for its flexible 2 % target.