Nov 11, 2021:
The 30-year-old record of inflation in the US has been broken due to the global corona virus pandemic.
President Joe Biden on Wednesday acknowledged that US buyers were paying too much for everyday items, following government figures showing that it had reached a 30-year high last month. The sharp rise in the Consumer Price Index (CPI) reported by the Labor Department surprised economists and the White House alike, and Biden turned to Baltimore to promote the $1.2 trillion infrastructure overhaul.
The president was in the east coast city to make the case that his infrastructure package, passed by Congress last week, would bring down costs and reduce supply bottlenecks.
The White House said Biden would sign an infrastructure package Monday with lawmakers from both sides who helped write it down and others who paved the way for it to the president’s desk.
US inflation has remained quiet in recent years, but began to roar with vengeance in 2021 as US businesses resumed normal operations with the help of COVID-19 vaccines. With a shortage of American workers and a decline in supply chains around the world, higher consumer demand put pressure on prices, which slowed the supply of key components such as semiconductors.
While Biden has argued that the increase would be temporary, he has given his opponents a strong response to the spending plans on which he has put his presidency at stake as his approval rating suffers.
Food and commodity prices have risen sharply. Oil, car and house prices are at 30-year highs. The US Consumer Price Index (CPI) rose 6.2 percent in the 12 months ending October, the highest level in 30 years of rising oil, car and house prices, according to Labor Department data.
Experts are also surprised by the data released by the US Labor Department. Experts say inflation did not rise during the Corona pandemic, but with the lifting of other restrictions, including vaccines and lockdowns, and the restoration of routine, prices are rising, due to a shortage of workers around the world. Prices have changed as supply chains have been affected. Dow Jones fell 0.7 percent, the S&P 0.8 percent and the Nasdaq index fell 1.7 percent.
Inflation in the United States rose to 6.2 percent last month, the highest since 1990. According to the report, inflation in the United States rose sharply for the first time in 30 years since December 1990. Under George W. Bush, when the United States was at war with Iraq and the Gulf states, inflation was not as high as it is now. Inflation rose to 5.9 percent in October, according to a report released by the US Department of Labor on Wednesday.
Inflation continues to rise across the country despite the lifting of the Corona virus restrictions in June. Energy prices in the United States rose 4.6 percent, breaking the August 1991 record.
Compared to September, CPI rose 0.9%, the Labor Department said, more than double the increase in the prior month and above forecasts from economists. Much of the surge was seen in energy prices, with gasoline spiking 6.1% last month alone, and fuel oil seeing a massive 12.3% increase.
Grocery prices also climbed last month, with food at home rising 1%, while food away from home, such as meals at restaurants, saw a 0.8% increase.
Used cars have seen an abnormal price surge throughout 2021 that bolstered overall inflation. After dipping in August and September, the October report showed they again shot up 2.5%.
Amid a nationwide housing shortage, housing costs including rent rose, with a 0.5% increase in the shelter category, according to the report. Food and energy prices are volatile, but even with those elements excluded, “core” CPI climbed 0.6% last month compared to the 0.2% increase in September.
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