If thing's[sic] are so crushingly expensive why is consumer spending at record levels right now?
When the expenses the consumer must disburse — food, fuel/transport, housing, medical care, education, tax collections, etc. — are subject to record level price increases for whatever reasons (corporate greed, increased/excessive governmental spending, usurious interest rates, transport costs, etc.) then the consumer will be spending at record levels to continue to do so.
Even if an individual is in the increasingly smaller portion of the population where these increased costs aren't a problem for them, they're still causing them to push more money through the system. Being wealthy doesn't make food less expensive, for example. So... record consumer spending. At every level.
Other metrics indicate that this record spending is not a healthy economic sign. For instance, rising credit card and auto loan delinquencies are signaling increasing distance between income and costs. People are spending everything they have to in order to get by and that naturally shows up as "increased consumer spending."
Another factor is people's inability to evaluate what is necessary. Large numbers of people treat various combinations of things like Netflix, premium sneakers and sunglasses, new clothing, high end phones, coffee, subscription software and services, visits to fast food emporia, bars and restaurants as "necessary." These are expenditures that don't help reduce spending on actual necessities in any way, but can in many circumstances cause the ready funds to come up short (and earlier) against those costs.
Social conditioning is largely responsible for these types of financial blunders, but again, given a previously somewhat stable situation that cost the consumer less, the increases will result in increased consumer spending until they hit the limits of what they can spend. They may then turn to credit, and we are seeing the results of precisely that in the current spate of increased credit delinquencies. Using credit to "get by" is unsustainable. But when people have to cover food and housing today, they will make the move today that ensures that is possible — today.