Largest U.S. Inflation Surge in More than 30 Years
Posted on 11/10/2021
Should the American public trust the board members of the Federal Reserve System when it comes to inflation forecasting? The “transitory” downplaying of inflation is becoming a major issue. U.S. inflation could remain elevated for much longer than the Federal Reserve expects.
The U.S. Bureau of Labor Statistics revealed some scathing stats on the U.S. economy. The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9% in October 2021 on a seasonally adjusted basis after rising 0.4% in September 2021, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 6.2% before seasonal adjustment.
Energy, shelter, and vehicle costs led the inflation gains, which more than wiped out the wage increases that workers received for the month.
CPI surged 6.2% from a year ago in October 2021, the most since December 1990. Core inflation, stripping out food and energy, ramped up to 4.6%, the fastest gain since August 1991.
The food at home index rose 5.4% over the past 12 months as all of the six major grocery store food group indexes increased over the period. The index for meats, poultry, fish, and eggs increased 11.9%, with the index for beef rising 20.1% and the index for pork rising 14.1 percent, its largest 12-month increase since the period ending December 1990. The other major grocery store food group indexes also increased over the last 12 months with increases ranging from 1.8%(dairy and related products) to 4.5 percent (nonalcoholic beverages).
The energy index rose 30.0% over the past 12 months, its largest 12-month increase since the period ending September 2005. All the major energy component indexes increased sharply over the last 12 months. The gasoline index rose 49.6% over the last year, and is now at its highest level since September 2014. The fuel oil index increased sharply over the year, rising 59.1 percent. The index for natural gas rose 28.1% over the last 12 months, and the electricity index rose 6.5%.
U.S. price increases over last year (CPI report)
Gas Utilities: +28.1%
Used Cars: +26.4%
New Cars: +9.8%
Overall CPI: +6.2%
Food at home: +5.4%
Food away from home: +5.3%