Consumer prices jumped 6.8% in the year to November and 0.8% last month alone as a roaring economy overwhelmed struggling supply chains and fueled inflation, according to data released Friday by the Labor Department.
The Consumer Price Index (CPI), a closely watched indicator of inflation, rose sharply in November as retailers, warehouses, suppliers and shipping lines struggled to meet intense demand.
Economists expected the CPI to rise 0.7% in November and 6.7% annually after year-on-year inflation hit 6.2% in October, the highest rate in October. 30 years.
The annual inflation rate of 6.8% in November was the highest since 1982.
While the November spike in inflation was widely predicted, the continued upward pressure on prices is a significant constraint on cash-strapped households and a political threat to the economy. President BidenJoe BidenNicaragua Breaks Diplomatic Ties With Taiwan, Acknowledges Chinese Sovereignty Biden Reassures Ukraine’s Zelensky Of US Support Amid Russian Aggression On The Money – Senate Risks Trump’s Wrath With Debt Ceiling Deal MORE and Democratic lawmakers.
Biden and his party have sought to highlight the many strengths of the recovery from COVID-19 recessions, which was fueled in part by a $ 1.9 trillion stimulus bill the president signed in March. . The unemployment rate fell to 4.2% as the labor market expanded in November, consumer spending exceeded pre-pandemic levels, wage growth accelerated, and the stock market reached new records.
Despite this, the persistence of high inflation has outweighed much of these gains in the public eye and has taken a heavy toll on those who can least afford it.
Economists have expressed confidence that inflation will finally start to slow next year as the global economy sheds the COVID-19 pandemic.