Consumer prices continue to surge as inflation accelerated to its fastest pace since 1982, driven largely by the cost of energy, vehicles and food.
The consumer price index, which measures the cost of various goods and services, jumped up another 0.8% on a seasonally adjusted basis in November — a 6.8% increase on a year-over-year basis compared to last November, according to a Labor Department report released Friday.
The core price index, which excludes volatile food and energy prices, climbed 4.9% compared to last year. That means that the price of other goods and services like clothing, haircuts and TVs are also rising, too.
Here’s a look at some of the biggest consumer prices changes in the past year, by percentage:
“Prices pressures are much more widespread,” as they reflect both strong consumer demand and supply chain issues, such as those in the auto sector, writes Leslie Preston, senior economist at TD Economics, in a statement. “Neither of these factors is likely to wane terribly quickly.”
Meanwhile, many Americans are feeling the effects of inflation. A recent Gallup survey reveals that 71% of households making less than $40,000 a year are experiencing financial hardship due to inflation, with 28% of those reporting “severe hardship.”
Inflation is also negatively impacting people who make less than $100,000 a year, with 47% of these households reporting hardship due to increased consumer prices.
While the Federal Reserve is currently gauging whether rates of inflation will subside quickly, it’s possible that the price increases will force the central bank to tighten its monetary policy — which could mean interest rate hikes in 2022.
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