Consumer spending remained strong during the holidays

(CNN)– Consumer spending remained strong during the holidays despite elevated prices.

New data from the Commerce Department shows spending rose half a percentage point in November as the holiday shopping season kicked into high gear.

Income growth, however, is weak. In November, income rose just .3%.

The report also showed that inflation remained higher than normal.

The personal consumption expenditures price index which is the Fed’s inflation gauge rose 0.2% on a monthly basis.

That brought the annual rate to 2.8% unchanged from September.