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The United States posted 6.8% year-on-year inflation, its highest since 1982



Consumer prices in the United States rose 6.8% in November from the previous year, the highest annual inflation rate since June 1982 , according to the latest data from the Consumer Price Index from the Bureau of Labor Statistics, published this Friday.

The figure exceeds 6.2% year-on-year in October.

Volatility in energy prices, supply chain cuts, high consumer demand and loose monetary policy are contributing to the rise in prices.

In monthly terms, general consumer prices increased 0.8% in November, while basic prices advanced 0.5% .

Although wages are also rising as a result of the worker shortage, they are not keeping up with rising prices, which is affecting lower-income households .

“Inflation affects those at the lower ends of the income and wealth spectrum, ” said Mark Hamrick, Bankrate’s chief economic analyst, according to the US outlet NBC News . “It is a kind of double whammy for lower-income households, which suffered the short but dramatic recession at the beginning of the pandemic, which served to exacerbate both wealth and income inequality, ” he added.

Economists are confident that inflation will finally begin to subside next year , as the global economy recovers from the COVID-19 pandemic.

Concerned about inflation in the United States, the International Monetary Fund (IMF) recently said that the United States Federal Reserve (Fed, central bank) should reduce its asset purchases more quickly to open the door to interest rate hikes earlier in 2022. , in view of the price increases that could be lasting in the North American country.

The Fed has already announced that it will cut measures to support the economy faster than expected. “Inflation could be higher and (last) longer than previously thought,” particularly in economies that recovered faster from the pandemic like the United States, said IMF chief economist Gita Gopinath and Tobias Adrian , director of the Department of Monetary Markets, in a note on the organism’s blog.

In any case, since the administration of US President Joe Biden, they do not believe that current inflation is a serious problem.

The Fed considers that it is transitory and that it is due to the imbalances between supply and demand as a consequence of the economic reopening after the pandemic. It also considers that there is still a short time for activity and employment to recover and that therefore it is necessary to continue with the expansionary monetary policy. Furthermore, he believes that inflation expectations are well anchored and therefore there is no risk of inflation spiraling .


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