INFLATION ALERT: Consumer Prices Soar 6.8% In November – Highest Increase In 40 Years

Brace yourself. Inflation accelerated at its fastest pace in 40 years, the Labor Department reported Friday.

The Consumer Price Index, a key measure of consumer prices, rose a whopping 6.8% in November. This is after its shocking 6.2% increase in October. 

This pace of increase in consumer inflation hasn’t been seen since June 1982–nearly 40 years ago.

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Trish Regan predicted the increase in inflation on her most recent podcast insisting that the Fed’s overly accommodative policies were to blame. You can listen here.

In line with this year’s trends, the highest increase was in energy prices. The index for energy rose 33.3%, and gasoline rose 58% on a yearly basis. Used cars and trucks, meanwhile, rose 31.4%.

The Core Consumer Price Index, or CPI excluding food and energy, rose 4.9%, meeting expectations.

This staggering increase in prices comes as the Federal Reserve promises to be less accommodative and reduce its massive bond purchasing program.

The Fed put these programs in place to support the economy in the pandemic. Yet, they’ve lingered despite the improvement in the economy and in demand, leading many economists to blame the Fed’s accommodative programs for the huge spike in inflation.

On a monthly basis, the CPI rose 0.8%, more than the expected of 0.5%. Core CPI rose 0.5%, in line with expectations. The Bureau of Labor Statistics also adjusted the October inflation rate to 0.9%.

There are growing concerns among investors that the Fed’s accommodative policies have also let to inflation within equity market valuations.

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