USA: Consumer prices increase 6,8% in November
Consumer prices in the United States increased 6,8% in November compared to 2020 as rising costs for food, fuel, housing and other items cause the highest annual inflation rate since 1982. The Labor Department also reported that prices increased 0,8% between October and November.
Inflation has intensified the pressure on consumers, especially lower income households and for everyday needs in particular.
Pay raises received by many workers have been undone, complicating Federal Reserve plans to cut aid to the economy and coinciding with a drop in public support for President Joe Biden.
The boost to inflation stems from a host of factors resulting from the swift rebound from the pandemic-triggered recession: a torrent of government stimulus, ultra-low Fed-managed rates, and input shortages at factories in the United States and China. abroad. Manufacturers have been held back by higher-than-expected demand, COVID-induced shutdowns, and overstretched ports and loading docks.
The labor shortage has caused wage increases, and many employers have raised their prices to offset rising costs, adding to inflation.
Hence, the prices of goods from food and used vehicles to electronics, home furnishings and car rentals have increased. The acceleration in prices, which began during the pandemic when people confined to their homes flooded factories with orders for goods, has spread to services: rentals, restaurants, medical services and entertainment.
The persistence of high inflation has surprised the Fed, whose Chairman Jerome Powell had characterized it for months as a short-term "transient" consequence of bottlenecks in supply chains. But two weeks ago, Powell implicitly acknowledged that he had persisted longer than anticipated. He hinted that the Fed will move more quickly to abandon its ultra-low interest rate policy sooner than expected.
Some economists have expressed the hope that inflation will peak in the coming months and then gradually decline to improve consumer prices.
Author: Patricia Chung 7:01 am