Consumer prices rose by 6.8 percent in November over the previous year, the highest annual inflation rate since June 1982, according to the latest Consumer Price Index data from the Bureau of Labor Statistics, released Friday.
The figure exceeds the 6.2 percent year-over-year figure from October.
Volatile energy prices, supply chain snarls, high consumer demand, and loose monetary policy are all contributing to the run-up in prices.
Increased demand, coupled with shaky supplies tends to drive up prices: Total spending by all consumers is up nearly 25 percent as of November, compared to January 2020, according to research at the nonprofit Opportunity Insights.
“Inflation matters very much for those at the lower ends of the income and wealth spectrums,” said Mark Hamrick, senior economic analyst for Bankrate. “It is a kind of double blow to lower income households, which suffered from the short but dramatic recession as the pandemic began, serving to exacerbate both wealth and income inequality.”