Just when we thought inflation had gotten so bad that surely something would be done to at least contain it, it rose again.
According to the Bureau of Labor Statistics, which reports on such matters, the Consumer Price Index rose by 0.8% in October, which means that the CPI overall has risen by a massive 6.8% over the past twelve months, with energy and food priced being particularly problematic.
Here is what BLS had to say about inflation over the past month and what factors made it rise so precipitously:
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent in November on a seasonally adjusted basis after rising 0.9 percent in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 6.8 percent before seasonal adjustment.
The monthly all items seasonally adjusted increase was the result of broad increases in most component indexes, similar to last month. The indexes for gasoline, shelter, food, used cars and trucks, and new vehicles were among the larger contributors. The energy index rose 3.5 percent in November as the gasoline index increased 6.1 percent and the other major energy component indexes also rose. The food index increased 0.7 percent as the index for food at home rose 0.8 percent.
For reference, when news came out that the CPI had risen by 6.2% over the past twelve months in October, that was the highest rate in 30 years. Now, with close to 7% inflation strangling the economy, this is approaching a 39 year high, with no end in sight. Perhaps we’ll soon be headed back to the dismal days of Jimmy Carter.
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Additionally, this CPI gain is even worse than experts predicted (which will come as no surprise to anyone who has been paying attention to the experts and their constant failures), according to CNBC, before the BLS CPI numbers were released:
Wall Street expects the index to reflect a 0.7% gain for the month, which would translate into a 6.7% increase from a year ago, according to Dow Jones estimates. Excluding food and energy, so-called core CPI is projected to rise 0.5% on a monthly basis and 4.9% on an annual basis.
If those estimates are correct, it would be the highest year-over-year reading for headline CPI since June 1982, when the index surpassed 7% after topping out at over 14% in both March and April 1980, a record that still stands. On core, the level would be the highest since June 1991.
So, their estimate was low and inflation is even worse than expected, touching levels last seen when Reagan finally broke the back of the stagflation that decimated the American economy in the 1970s. Unfortunately, this time we don’t have the Gipper to guide us through the trouble. Instead, we have Slow Joe.