U.S. inflation grew by 6.8% in November from the same month last year, the fastest pace since 1982. According to the consumer price index (CPI) report revealed Friday, the jump was slightly higher than expected, which puts the Federal Reserve under the spotlight amid pressure on the economic rebound.
As reported by CNBC, inflation in the country beat estimates for November and increased 6.8% from a year previous. The Labor Department indicated that, excluding food and energy prices, “so-called core CPI was up 0.5% for the month and 4.9% from a year ago, which itself was the sharpest pickup since mid-1991.”
The year-on-year increase rate is the fastest since June 1982, as the Dow Jones estimated a 6.7% in the same period.
According to the report, energy prices have played a major role by recording a 33% increase since November last year, while “gasoline alone is up 58.1%.” The price of second-hand cars and trucks grew 31.4% after tailing off by 2.5% a month earlier.
Food alone reported a 6.7% increase YoY, being the fastest 12-month pace in roughly 13 years according to the Labor Department. Rising costs of services is a noticeable trend as they grew 3.2% in the same period, and 0.4% for the month.
CNBC informs that “Markets reacted positively to the report, with stock index futures on Wall Street rising, while government bond yields also climbed. Some economists thought Friday’s report could indicate even sharper inflation of greater than 7% for the headline number.”
Experts agree that inflation in the country is the main source of concern amid a record drop in new unemployment claims and a gross domestic product that is estimated to bounce back by the end of the year after Q3 was a torrid affair.
Next week, the Federal Reserve will gather for two days and discuss the course of action to counter rising prices. Investors will be expectant about the results of the meeting, with an eye on the Fed doubling the tapering of asset purchases to $30 million per month as of 2022.
U.S. inflation is raising concerns around the globe, while President Joe Biden has seen his approval rating frozen at 41% “due in large part to 56% of respondents who disapprove of his economic record, compared to just 37% who approve.”