Inflation in the US has Jumped to a 40 year old Peak

In November, US consumer prices rose at an unprecedented rate since nearly 40 years, US government sources said, stressing that inflation is threatening the world's largest economy and, at the same time, threatening public support for President Joe Biden.

The Ministry of Labor's consumer price index jumped 6.8 percent from November last year, its biggest increase since June 1982, as prices for gasoline, used cars, rents, food and other goods continued to rise.

The report is an excellent weapon in the hands of Republicans who use it against Biden to challenge his economic policies.

Biden said the report did not cover recent declines in energy and used car prices - the two main drivers of high inflation this year - and that supply chain problems that led to higher prices were being addressed.

"Today's numbers reflect the pressures facing the world's economies as we emerge from a global pandemic - prices are rising," Biden said.

Republican Mitch McConnell blamed the White House for the price increase, saying the data "confirms what every American family already knows: inflation is beyond the control of Democrats."

Gasoline prices jumped 6.1% last month. The monthly rate of consumer price inflation also slowed slightly to 0.8%, but was still higher than expected.

The Biden administration fears the negative political consequences of the impact of higher inflation on households and is trying to shift the blame to other side factors. The White House says his actions have helped the country recover from last year's economic collapse, citing a steady decline in unemployment and the number of people applying for unemployment benefits.

/BGNES

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