The November inflation rate is 6.8 percent, and 0.8 percent last month alone, which is the highest since 1982, according to the data released by the Labor Department.
While retailers, warehouses, suppliers and shipping companies struggled to meet intense demand, the consumer price index (CPI) went up sharply in November.
It is expected that the CPI will rise 0.7 percent in November and 6.7 percent annually after year-over-year inflation rose to 6.2 percent in October, according to economists.
Although this inflation was projected, the constant pressure to increase prices is a significant pressure for households in the absence of money and a political threat to President Biden and Democratic lawmakers.
Even after the unemployment rate sank to 4.2 percent as the labor market expanded in November, consumer spending has risen, wage growth has accelerated and the stock market has rallied to new record highs, in the eyes of the public, the high inflation has overwhelmed much of those gains.
Biden said in a statement that the economic growth is stronger here than virtually any other nation and that Americans have more money in their pockets than this time last year. “We have to get prices and costs down before consumers will feel confident in that recovery. That is a top goal of my administration,” Biden said.
If we compare consumer prices for November and October, stats say that consumers in November paid 0.7 percent more for food, 6.1 percent more for gasoline and 0.5 percent more for shelter than they did in October.
Economists are confident that inflation will begin to fall next year as the global economy shakes off the virus but will possibly remain up through the winter.
Ian Shepherdson, chief economist at Pantheon Macroeconomics said that a higher core inflation rate over the next few months “looks like a safe bet.” “Whatever happened to the core CPI month-to-month in November, the upward pressure on the year-over-year will persist through March, at least, because base effects are very unfavorable,” Shepherdson said.