Jakarta, CNBC Indonesia – US inflation hit its highest level in nearly four decades in November, as strong consumer demand was exacerbated by supply constraints related to the pandemic.
The US Department of Labor said the consumer price index – which measures how much consumers pay for goods and services – rose 6.8 percent in November from the same month last year. The increase was the fastest pace since 1982, and it was the sixth month in a row that inflation stood at 5%.
Core Price Indeks (CPI), which excludes inflation in the volatile food and energy categories, rose 4.9% in November from a year earlier. That was a sharper increase than the 4.6% gain in October, and also the highest pace since 1991 in the United States.
The biggest price increase was for new vehicles, which reached 11.1% in November, with bsome energy-related prices are showing signs of easing.
The upward trend in prices in November occurred before the appearance of the Omicron variant, which poses a new threat from the pandemic, which has entered its second year. This sharp increase in prices is the result of the rapidly growing US economy amidst the global economic recovery from the pandemic and causing imbalances in supply chains.
The reduced supply amid high demand for goods and services has caused prices to skyrocket in recent months.
On a monthly basis, November’s CPI increased 0.8% from the previous month, almost identical to the 0.9% increase in October.
The high pace of US inflation is a strong signal for Federal Reserve officials to speed up tapering soon, paving the way for raising interest rates next year to keep inflation under control.
The shortage of available workers also affects inflation and the economy as a whole, prompting companies to raise prices to offset higher labor costs.
Inflation was also exacerbated by companies still struggling and struggling to get material supplies, although supply constraints showed signs of easing before the Omicron variant appeared. The shortage of semiconductors that hinders car production is one of the most obvious.
Economists generally see inflationary pressures from supply constraints easing in 2022 as workers return and factories are expected to resume operations smoothly, consumer demand for goods easing as production picks up.
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