United States

US inflation skyrockets over 6%, record in 30 years

21:34, 10 November 2021
US inflation skyrockets over 6%, record in 30 years Photo: pixabay.com

The CPI growth recorded in October reached 6.2%, the largest result since 1990.

The United States Department of Labor announced on Wednesday that the US inflation rose by 6.2% compared with the previous year. This number has set a new record unbeaten since 1990.

The consumer price index (CPI) showing monthly price changes on basic goods and services showed an unexpected increase as Dow Jones economists had forecast only 5.9%.

As for monthly changes, the CPI rose by 0.9% versus 0.6% predicted, while annual core inflation reached a 4.6% growth against 4% expected.

Energy prices show far more significant change as fuel oil prices have grown by almost 60% since last year’s records and other energy prices showed +30% this year. Second-hand automobiles approach them with a 26.4% increase over the year.

Nutrition prices rose around 0.9% per month and made a total 5/3% growth in the year, with some categories hitting 1.7% and 12% respectively.

Accommodation cost which makes one-third of the CPI estimation grew by 3.5% in the recent year, or 0.5% per month.

In another report, the Labor Department unveiled that real wages dropped by 0.5% after inflation in the first month of autumn.

On the other hand, initial claims for jobless benefits lowered to 267,000 which is below Dow Jones’s predictions by 2,000.

Finance executives including Treasury Secretary Janet Yellen admit that the situation turned out to be worse than they expected but stressed that the normal pace can be achieved in the upcoming year already.

The central bank has warned that it is likely to reduce the amount of bonds it buys each month to toughen its monetary policy. However, it assured that the interest rate will not jump in the near future.