US consumer prices jumped 6.2 per cent in October compared with a year earlier, as the cost of food, gas, and housing all surged.
Americans have not seen an inflation rate this high in 30 years — since George HW Bush was president and the US prepared for its first war in the Gulf against Iraq.
The year-over-year increase in the consumer price index exceeded the 5.4 per cent rise in September, the Labor Department reported on Wednesday.
From September to October, prices jumped 0.9 per cent, the highest month-over-month increase since June as the country continuest o struggle with post-pandemic supply chain issues and labour shortages.
Inflation is eroding the strong gains in wages and salaries that have flowed to America’s workers in recent months, creating political headaches for the Biden administration and congressional Democrats and intensifying pressure on the Federal Reserve as it considers how fast to withdraw its efforts to boost the economy.
Job gains and pay raises have been much healthier during the pandemic recovery than they were after the Great Recession just over a decade ago — in contrast the US economy has bounced back remarkably quickly.
However, accelerating inflation is diminishing Americans’ confidence in the economy, polls have found.
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