Inflation in the United States has risen to 5.4 percent, the highest level since 2008, as supply chain problems persist.
According to the Associated Press, the United States’ inflation rate is up 5.4 percent from a year ago, the largest rate change since 2008, as global supply chain concerns remain, pushing consumer prices higher.
The annual increase in the consumer price index was the largest in 13 years, according to the Labor Department, matching the figures from June and July. When volatile food and energy categories are excluded, core inflation grew 0.2 percent in September and 4% year over year. In June, core prices touched a 30-year high of 4.5 percent.
Due to global supply chain issues, according to Oxford Economics economist Kathy Bostjanicic, inflation is anticipated to continue high throughout next year.
“As supply/demand imbalances are only progressively rectified, price rises resulting from continued supply chain bottlenecks amid high demand will keep the rate of inflation elevated,” Bostjancic added.
“While we agree with the Fed that this isn’t the start of an upward wage-price spiral, we expect inflation to remain around 3% through mid-2022.”
See the list below for more Associated Press reporting.
This year’s surprise spike in inflation is due to increasing prices for food and energy, as well as furniture, vehicles, televisions, and other mostly imported commodities. COVID-19 has caused factory closures in Asia and hampered port operations in the United States, stranding container ships at sea and forcing consumers and businesses to pay more for commodities that may not arrive for months.
The Fed’s $120 billion in monthly bond purchases, which are intended to keep longer-term interest rates low, are likely to be reduced shortly, given the current inflationary data. The Fed is widely expected to announce such a move at its November 3 meeting, according to most analysts.
Higher prices are also outpacing the pay raises that many workers may expect from their employers, who are forced to pay more to attract personnel. In September, average hourly salaries increased by 4.6 percent over the previous year, a healthy gain but not enough to keep up with inflation.
In September, prices in categories that had been pushed substantially higher by the epidemic decreased or reduced, which was a positive indicator. Core price rises did not intensify as a result of these decreases.
The hotel expenses. This is a condensed version of the information.