PanamaTimes

Saturday, May 18, 2024

US inflation surges to highest level since 1982

US inflation surges to highest level since 1982

Fuel prices, food, housing and car prices were among the main drivers of the increase as Americans faced paying more for goods and services.

US inflation has hit a 39-year high in the latest sign of a cost of living squeeze for consumers in the world's biggest economy.

Figures from America's Bureau of Labor Statistics (BLS) showed consumer price index (CPI) inflation hit 6.8% last month, the biggest year-on-year surge in prices since June 1982.

The reading, which was in line with expectations, was up from 6.2% in October.

Federal chair Jerome Powell has been taken aback by the persistence of inflation


Prices climbed across the board, with fuel prices, housing, food and cars among the bigger contributors, the report said.

An index of eating out prices showed a 5.8% increase, its highest rate since January 1982, while food eaten at home saw its sharpest year-on-year rise since December 2008.

Fuel prices were up by 58.1% on the same period in 2020 - the biggest annual rate of increase since April 1980.

Inflation has been fuelled by a combination of factors linked to the economy's rebound from the pandemic in a trend being mirrored, though at slightly more modest rates, in Europe and the UK - where it has been predicted that price growth will comfortably top 5% by the spring.

It has put pressure on the Federal Reserve to find a way to roll back more quickly multi-billion dollar stimulus programmes and ultra-low interest rate policies that cushioned the US economy through the pandemic without damaging the recovery.

High inflation also creates a headache for Joe Biden as he faces flagging public support.

Inflation creates a headache for Joe Biden as he faces flagging public support

Global supply chain shortages are among the factors putting upward pressure on prices as manufacturers struggle to meet resurgent demand while ports jam up.

Meanwhile, employers struggling with labour shortages have been raising pay.

The persistence of inflation has surprised the Fed, with the central bank's chair Jerome Powell two weeks ago abandoning his insistence that it was a "transitory" result of supply bottlenecks.

He has now signalled that the Fed - whose officials meet next week to hammer out their latest policy decision - is likely to go faster in scaling back stimulus.

But some experts see signs of pressures easing as oil and gas prices declining.

The emergence of the Omicron could have a further dampening effect if it means waning demand for shopping trips, travel and eating out.

Comments

Oh ya 2 year ago
Increase of interest rates kills the stock market and makes it harder for the USA to service their massive debt which they already have to borrow money to pay the interest and second if they do not raise it everyone suffers with this huge inflation. If you figure out inflation like the government did in 1980 today it is 15% according to Shadowstats. Not the 6 % the government is admitted to
Oh ya 2 year ago
So are you Dems still happy with mr poopy pants

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
El Salvador's Bitcoin Holdings Reach $350 Million
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
German politician of the AFD party, Marie-Thérèse Kaiser was just convicted & fined $6,000+
Changpeng Zhao Sentenced to Four Months in Jail
Biden Administration to Relax Marijuana Regulations
101-Year-Old Woman Mistaken for a Baby by American Airlines: Comical Mix-Up during Flight Check-in
King Charles and Camilla enjoying the Inuit voice singing performance in Canada.
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Headlines - Thursday, 23 April 2024
Illinois Woman Wins $45M Lawsuit Against Johnson & Johnson and Kenvue for Mesothelioma Linked to Baby Powder
Panama's lates news for Friday, April 19
Creative menu of a Pizza restaurant..
You can be a very successful player, but a player with character is another level!
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
Iran fired more than 300 drones and missiles at Israel overnight. Israel Reports Light Damage After Iran Launches Large Strike.
I will never get enough of his videos and the pure joy and beauty of these women!!
Scientists at the University of Maryland have developed an "invisibility cloak", for AI using adversarial patterns on a sweater, making the wearer nearly undetectable to standard object detection methods.
Lamborghini Bids Farewell to Its Best-Selling Sports Car: The Huracán
Sam Bankman-Fried Appeals 25-Year Prison Sentence for $8bn FTX Fraud
OJ Simpson, ex-NFL star who was acquitted of murder, dies aged 76
British Backpacker Imprisoned in Notorious Bolivian Prison: Family Raises Funds for Legal Fight and Essentials
Argentina: Venezuela Cuts Power to Embassy after Opposition Meeting
El Salvador Offers 5,000 Passports to Skilled Foreign Workers: Tax-Free Relocation and Citizenship
Panama Papers Trial Begins: Founders of Mossack Fonseca Face Money-Laundering Charges
75 Becomes the New 65: Retiring in Your 60s Unrealistic as Life Expectancy Increases and Costs Rise
Total Solar Eclipse of 2021: 32 Million Witness the Mystical, $1.5bn Spectacle Sweep Across North America
New shopping experience…
New world, new reality, let’s get used to it
UK Company Passes Milestone in Developing Space-Based Solar Power, Aiming to Power a Million Homes and Provide Constant Energy
Mexico Breaks Diplomatic Ties with Ecuador after Police Storm Embassy, Arrest Former Vice President
Monty Python were so ahead of their time
If there's a will, there's a way!
Rules about how to dress are important, but not so much if you have a lot of money.
Body Armor Firm Showcases Stab-Proof Vest in Demo on CEO
Mexico Cuts Diplomatic Ties with Ecuador After Embassy Stormed in Quito
Here is a tattoo idea, for engineers
Zoraya Ter Beek, a 28-year-old woman from the Netherlands, will undergo euthanasia in May due to severe mental health challenges
Here's a video featuring Fidel Castro, where he discusses his stance against war and his commitment to preserving life, positions that have put him at odds with the USA:
Woman reaches behind and steals gun from a security guard and shoots three people while getting detained in Chile
Take a walk around the safe and thriving downtown San Salvador.
Joe Biden criticised by Trump campaign for declaring Transgender Day of Visibility on Easter Sunday
Macron says France will help Brazil develop nuclear-powered submarines
A video demonstrating women's self defense class in 1930
×