Due to rising raw material prices, staff shortages and logistics bottlenecks, companies are forced to pass on the higher costs in their prices. As a result, costs of daily living in the United States rose by 6.8% last month compared to the same period last year.
Inflation is exactly in line with economists’ average expectations polled by Reuters news agency. Excluding the very volatile food and energy prices, inflation rose to 4.9% year on year. That is the strongest increase since June 1991.
The strong price increases are largely caused by the rapid and strong economic recovery from the corona crisis. As a result, producers need much more raw materials. This leads to shortages and higher transport costs.
In October, inflation at 6.2% was already at its highest level since 1990. In June 1982, the currency depreciation in the US was 7%, after peaking at more than 14% in March and April 1980. The US economy at the time was in a state of flux. deep and ongoing recession.
Inflation plays an important role in the interest rate policy of the US Federal Reserve. Fed Chair Jerome Powell already announced at the end of November that the corona support for the largest economy in the world must be reduced more quickly if inflation turns out to be more persistent than previously expected.
The Fed started phasing out corona support in November. Next week, the central bank will hold its last policy meeting of this year to discuss an accelerated winding-down. According to the current schedule, the support phasing out will be completed by mid-2022.
US inflation at highest level since 1982 | Financial
Source link US inflation at highest level since 1982 | Financial