Inflation Surged 6.8% In November, Even More Than Expected, To Fastest Rate Since 1982

Read the full article by Jeff Cox here

Key Points:

• Inflation rose 6.8% from a year ago in November, slightly higher than estimates according to the consumer price index released Friday.

• Excluding food and energy, the CPI increased 4.9%, in line with expectations.

• Surging prices for food, energy and shelter accounted for much of the gains.

• The consumer price index, which measures the cost of a wide-ranging basket of goods and services, rose 0.8% for the month, good for a 6.8% pace on a year over year basis and the fastest rate since June 1982.

• Excluding food and energy prices, so-called core CPI was up 0.5% for the month and 4.9% from a year ago, which itself was the sharpest pickup since mid-1991.

• The prices of food, used cars and parts have been a big factor in calculating the level of inflation. Used cars are up over 31%.

• According to the labor department, the 3.8% on the year which marks the highest since 2007. Which was when the housing crisis began to accelerate.

• “There’s no question no matter how you look at it, even if you take out the extremes caused by the pandemic, it’s still very high inflation,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab. “This is still supply chain disruption, semiconductor-related inflation.”

• Some economists, however, think inflation is near its peak, particularly with energy prices declining in recent weeks. While West Texas Intermediate oil is up more than 52% in 2021, the price has come down about 14% from its most recent peak in November.

• President Joe Biden has been paying a political price for surging prices: A recent CNBC survey showed his approval rating stuck at just 41%, due in large part to 56% of respondents who disapprove of his economic record, compared to just 37% who approve.