The US inflation rate rose 6.8% over the last year, the highest increase since 1982, the Bureau of Labor Statistics reported Friday morning.
Inflation rose 0.8% in November after rising 0.9% in October. Price increases were seen across many sectors, including gas, food and housing. This is the sixth month in a row the US is seeing price increases.
Gasoline prices rose by 58.1% in November – the largest increase over 12 months since 1980.
Within the food index, grocery store prices increased across the board for a third month in a row. Meat, poultry, fish and eggs saw a 0.9% increase in November while cereals and bakery products saw price increases of 0.8%.
The price index that does not include food and energy rose 0.5% in November after a 0.6% increase in October. The prices of used and new cars, household furnishings, apparel and airline fares all notably rose last month.
Ahead of Friday’s data release, Joe Biden released a statement saying that the inflation rate “does not reflect today’s reality”.
“It does not reflect the expected price decreases in the weeks and months ahead, such as in the auto market,” Biden said in the statement.
As inflation has become a line of attack from the administration’s critics over the last few months, the White House has maintained that today’s inflation is “transitory”, or a temporary rise in prices, because of the pandemic.
The Federal Reserve last month took its first step to curb some of its pandemic assistance after pressure from critics around inflation. The central bank in November ended some of its stimulus programs, in which it bought bonds to stimulate the economy. But the Fed held off from adjusting interest rates – its main tool to control rising prices.
Rising prices tend to be a political sore spot for the party in power, though its causes are complex. Republicans are already blaming Biden for Friday’s number, with the Senate minority leader, Mitch McConnell, criticizing Democrats on Twitter for responding to inflation “by ramming through another massive socialist spending package”, referring to the $1.75tn social and climate spending bill that is in negotiations.
6.8% inflation is the worst in almost 40 years. It is unthinkable that Senate Democrats would try to respond to this inflation report by ramming through another massive socialist spending package in a matter of days. https://t.co/EcqeBjs9ay
— Leader McConnell (@LeaderMcConnell) December 10, 2021
While economists have been divided over the concern the federal government should have over inflation, some have pointed out that while inflation has been rising, the unemployment rate has remained low and wages have been increasing. And while consumer confidence has dropped because of inflation, spending has been strong with retail sales rising in October.
