US prices jumped 6.8% in November, the biggest increase since 1982
Consumer prices surged last month at their fastest pace since 1982, soaring inflation in items ranging from food to shelter showing no signs of slowing down.
The consumer price index, which tracks the price of a wide range of goods, rose 0.8% in November and 6.8% from a year ago, the department said on Friday. work. Core inflation, which excludes volatile food and fuel prices, rose 4.9% in that 12-month period.
Price increases hit a wide variety of commodities, with food, shelter, new and used cars and gasoline all showing the biggest jumps. Last month, energy costs soared 33% from a year ago, food costs rose 6%, and used car and truck prices soared 31%.
Persistently high inflation surprised the Federal Reserve and its chairman, Jerome Powell, who for months called the sharp price hike “transient” and a short-term consequence of harassed supply chains. But two weeks ago heimplicitly acknowledging that high inflation has lasted longer than expected.
Rubeela Farooqi, chief US economist at High Frequency Economics, expects inflation to remain high over the next few months, although she believes prices should moderate over time.
That inflation was fueled by a mix of factors resulting from the rapid rebound from the pandemic recession: a flood of government stimulus, Fed-designed ultra-low rates, and supply shortages at factories in the United States and abroad. Manufacturers have been slowed down by strong customer demand, COVID-related closures and overwhelmed ports and freight stations.
“Part of the high fourth quarter inflation is due to supply chain issues and the lag between the recovery in consumer demand and the resumption of business output,” PNC Senior Economist said , Bill Adams, in a note. “But other sources of recent inflationary pressures seem likely to persist,” he added, such as the surge in house prices that started last year.
Food, fuel, cars
These are the categories that drive inflation up in November, according to the Labor Department, along with their year-over-year price increases.
- Fuel oil – 59.3%
- Gasoline – 58.1%
- Used cars and trucks – 31.4%
- New vehicles – 11.1%
- Food – 6.1%
- Clothing – 5.0%
- Shelter – 3.8%
- Transportation services – 3.9%
Soaring prices have also held back consumers. While workers’ compensation has also grown at a steady pace this year as employers try to attract workers into a tight labor market, wage growth has failed..
Even as prices skyrocket, economists expect inflation to slow over the next few months, driven by falling oil prices and uncertainty over the future.Variante Omicron.
“[W]With energy prices falling sharply in recent weeks, last month probably marked the peak, “said Paul Ashworth, chief US economist at Capital Economics, in a report.
The Associated Press contributed reporting.