Inflation in the United States is up almost 7% over the past year, the Labor Department said in its consumer prices report on Friday — which is the highest year-to-year gain in almost four decades.
The Consumer Prices Index for November was up 0.8% over October, the department said. The index measures the cost of a variety of goods in the United States.
Over the past 12 months, prices are up 6.8%, the report said. That’s the highest year-to-year rise since 1982. The rise was slightly more than most analysts expected.
Minus food and energy, prices were up 0.5% for November and 4.9% over the 12-month period.
November was the sixth straight month in which year-to-year inflation has risen by at least 5%.
Again, the cost of energy drove the increase. The energy index is up 33% over November 2020. Gasoline alone was up 58.1% over that time. Food prices are up 6.1% over a year ago.
The department said Friday that the energy and food components saw the fastest 12-month increase since at least 2008.
“[The figures] further challenge the Fed to not only accelerate tapering, which is kind of a given at this point but probably consider hiking in the early part of next year,” Tom Graff, head of fixed income at Brown Advisory, told CNBC.
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