Inflation in the US accelerated again in November, recording the largest increase in almost 40 years.
That fact must be taken into account. ” “It’s a real obstacle in the way,” Biden admitted, while trying to downplay the problem.
Prices, Biden said, are rising because of supply chain concerns. “You will see the price of oil, of gasoline, fall in the coming months,” he added, acknowledging that inflation is affecting people’s lives. White House spokeswoman Jen Psaki, when asked by reporters if the Fed would raise interest rates to fight inflation, said the Fed is an independent agency that makes its own decisions.
The largest increase since June 1982
The increase in prices amounted to 6.8% last month compared to November 2020, after reaching + 6.2% in October, according to data on the consumer price index announced today by the Ministry of Labor. It is the largest increase since June 1982. The figures are in line with analysts’ forecasts. Compared to a month earlier, price growth slowed: + 0.8% compared to + 0.9% in October.
Americans thus continued to pay for everything more expensive: from food and clothing, to cars, fuel, electronics, and airline tickets. “Today’s data confirms what every American family already knows: inflation is out of control under Democrats,” said Republican Sen. Mitch McConnell in a statement.
Strong demand ran into the supply problem
“Developments in the weeks following last month’s data collection show that price and cost increases are slowing,” Biden said in a statement, citing current developments rather than last month’s figures. acknowledging that prices are falling “not as fast as we would like”.
As in October, strong demand ran into the pandemic supply problem. Biden did not fail to emphasize that all countries are facing inflationary pressures. Excluding the extremely volatile energy sector (+ 33.3% increase over the year) and food, inflation was contained at 4.9%.
To prepare the public for the bad data, Biden had announced from Thursday that prices were higher in November. Today, he referred to the recent decline in prices for energy, fuel, gas, used cars. Compared to October, the monthly price increase was kept at + 0.8%, from + 0.9%. However, it was higher than analysts’ forecasts (+ 0.6%). In addition, the data were collected before the Omicron variant of the Covid-19 appeared, posing a new threat to the US and global economies.