US consumer prices for goods and services have not risen as much as in November 1982.
Due to rising raw material prices, staff shortages and logistics disruptions, companies are forced to pay higher costs on their own. As a result, the cost of living in the United States increased by 6.8% last month compared to the same period last year.
Inflation is in line with the average expectations of economists polled by Reuters. Excluding the highly volatile food and energy prices, inflation rose to 4.9% year-on-year. This is the strongest increase since June 1991.
Strong price rises are often caused by the rapid and strong economic recovery from the Corona crisis. As a result, manufacturers need more raw materials. This leads to transportation costs and shortages.
In October, 6.2% inflation was already at its highest level since 1990. Currency depreciation in the United States was 7% in June 1982, peaking at more than 14% in March and April 1980. The US economy at that time was in deep and ongoing recession.
Inflation plays a key role in the US Federal Reserve’s interest rate policy. Fed President Jerome Powell has already announced at the end of November that if inflation is higher than previously expected, corona support for the world’s largest economy should soon be reduced.
The central bank began to phase out corona support in November. Next week, the central bank will discuss the final policy meeting of this year on an accelerated freeze. According to the current schedule, support will be phased out by mid-2022.
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