U.S. inflation rate reaches its highest point since 1982
The economy shows little signs of inflation slowdown as the uptick is likely to continue well into 2022.
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The U.S. Department of Labor released new inflation rates for consumer prices, reflecting an increase of 6.8% that has not been seen in 39 years.
Statistics from the U.S Bureau of Labor report follow seasonal spending patterns to measure how prices change. In November, the Consumer Price Index for All Urban Consumers (CPI-U) showed an 0.8% uptick after rising 0.9% in October.
All items relating to food, energy, and fuel oil had slightly slower increases last month, while gasoline remained steady.
As families still spend for the holidays, the high rates cause concern for the average household who will feel the most pinch in cost. Grocery prices in metro areas are an example of household needs that continue to soar in December.
President Joe Biden believes that inflation is at its “peak” claiming that the economy is “racing ahead in every other aspect” on Friday.
He told citizens during a visit to Kansas City on Wednesday that he plans to reduce gas prices and make sure Americans aren’t overpaying.
“We’re gonna keep at it to ensure the American people are paying their fair share for gas, not being gouged for gas,” said Biden.
Heather Long, columnist from the Washington Post tweeted the biggest price jumps in a year.
Inflation in November hit 6.8%. Here are the biggest annual increases:— Heather Long (@byHeatherLong) December 10, 2021
Rental car 37%
Used car 31%
New cars 11%
The period otherwise known as The Great Inflation lasted nearly two decades. Under the Reagan administration, America lived through dire years of inflation and since then has kept it under control.
Still, the major difference between 1982 and today is the decreasing dollar value consumers face.
According to InflationTool, the value of $100 in 1982 is equivalent to $277.20 in 2021 — a $177.20 difference in spending cost.
Inflation rates during Reagan’s presidency had reached as high as 6.16%. Philadelphia had an increase of 4.86% changing the dollar value from $1 to $1.05.
Shoppers this season are left facing a challenging decision. Although President Biden expects a positive outcome as the year comes to a close, the question on many people’s mind is when will inflation come to an end with no turning point in view?