US Inflation Highest Since 1982
December 13, 2021
The price of U.S. consumer goods, such as
food, fuel and rent, rose at the fastest
pace since 1982 in November, according to a
Department of Labor report Friday.
The 6.8% increase was the highest since June
of 1982. The November rate follows a 6.2%
increase in October.
Even with more volatile items such as food
and energy stripped out, core inflation was
up 4.9%, the biggest increase since 1991.
Energy prices in the United States surged by
3.5% in November and are up more than 33%
for the year. Gasoline, for example, is 58%
higher than it was a year ago.
The price of food has risen by 6.1% over the
past year, and the price of used cars and
trucks is up 31% for the year.
The steep surge in the cost of everyday
goods has hurt lower income workers the most
and is negating wage gains seen as employers
try to lure Americans back into the
workforce with higher wages.
Biden administration blames COVID-19
pandemic-related economic disruptions for
the inflation surge, while Republicans say
price increases are being caused by massive
government spending in response to the
Inflation threatens Biden’s signature “Build
Back Better” $1.7 trillion spending bill,
which was passed by the House of
Representatives and is being considered by
Democratic Senator Joe Manchin this week
warned against flooding the market with more
money while speaking at a CEO summit
sponsored by The Wall Street Journal
Many economists think persistent inflation
could also influence the U.S. central bank’s
future actions. Federal Reserve Chair Jerome
Powell once called inflation “transitory,”
but two weeks ago signaled the Fed may have
to act quickly to raise interest rates to
restrain rising costs.
of Use | Copyright
© 2002 - 2021
SM CORPORATION. All
rights reserved. |