Prices for U.S. consumers jumped 6.8% in November compared with a year earlier as surging costs for food, energy, housing and other items left Americans enduring their highest annual inflation rate in 39 years.
The Labor Department also reported this morning that prices rose 0.8% from October to November—a substantial increase, though slightly less than the 0.9% increase from September to October.
At this point, inflation has negated the higher wages many workers have received, complicating the Federal Reserve’s plans to reduce its aid for the economy and coinciding with flagging public support for President Joe Biden, who has been taking steps to try to ease inflation pressures.
Fueling the inflation has been a mix of factors resulting from the swift rebound from the pandemic recession: A flood of government stimulus, ultra-low rates engineered by the Fed and supply shortages at factories in the U.S and abroad. Manufacturers have been slowed by heavier-than-expected customer demand, COVID-related shutdowns and overwhelmed ports and freight yards. Â
Employers, struggling with worker shortages, have also been raising pay, and many of them have boosted prices to offset their higher labor costs, thereby adding to inflation. Read more.
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