Inflation Reaches 'Frighteningly High' Level

CPI hits annual rate of 6.8% in November, highest in 39 years
By John Johnson,  Newser Staff
Posted Dec 10, 2021 7:40 AM CST
Inflation Is Highest in Nearly 40 Years
A customer pumps gas at a station in Richmond, Va., Tuesday, March 16, 2021.   (AP Photo/Steve Helber)

Last month's inflation report showed it was the worst in three decades. This month's? The worst in four decades, reports the Wall Street Journal. The Labor Department said Friday that the Consumer Price Index—which this year may have surpassed the monthly jobs report in significance—hit an annual rate of 6.8% in November, per the AP. That's the highest mark since 1982 and the sixth straight month the CPI has increased. For the month alone, inflation rose 0.7% from October. As CNBC notes, the gauge covers everything from gas and groceries to garden and pet supplies.

“These are frighteningly high inflation numbers, the likes of which we haven’t seen for decades,” Allen Sinai of Decision Economics tells the Journal. But he adds a silver lining, noting that the hot inflation signals the economy is strong is certain respects. “We have tremendous spending by consumers," he says. "A lot of people are getting hired. Demand is huge. Monetary policy remains very easy and fiscal stimulus has no precedent in history." Investors will have their eye on the latter point, notes CNBC. The Federal Reserve meets next week, and the markets will be watching to see if the central bank eases up on stimulus to try to keep inflation in check. (Read more inflation stories.)

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