According to the U.S. Bureau of Labor Statistics, prices increased 6.8% in November compared with 12 months ago. It’s the largest rise in close to forty years, and U.S. policymakers are backing away fast from saying inflation is transitory.
Inflation accelerates in the United States
Inflation continues to rear its ugly head in America as the cost of goods and services continues to rise with 2021 nearing the year’s end. On Friday, the Bureau of Labor Statistics, a unit of the United States Department of Labor, published the agency’s consumer price index (CPI) report for November and statistics look awful. The CPI measures the consumption of urban households’ regular goods. It rose 6.8% during the same period of 2020, marking its highest ever rise in almost 40 years.
Of course, economists and analysts all over the world had something to say about America’s rising inflation. The journalist and “market maniac” Holger ZschäpitzDiscussed the most recent CPI report by the Bureau of Labor Statistics.
“Ouch! Inflation in the United States jumps up to 6.8% [November], meeting economists’ expectations,” Zschäpitz said. “The reading shows the fastest pace of price growth since 1982, when Ronald Reagan was president. Inflation has accelerated through the fall as the supply crisis and strong spending fueled price hikes.”
The latest CPI report shows that American households spent 0.8% more on consumer goods and services in October. Sven HenrichNorthmantrader.com’s founder was a sarcastically funny man named. told his 323,800 Twitter followers “as long as you don’t need cars, housing, food or energy inflation is only 6.8%.” In a recent blog post published by Henrich, the market analyst criticized Fed chair Jerome Powell for sticking to the transitory inflation narrative for so long.
“What a colossal embarrassing blunder,” Henrich said. “Once again a Fed Chair being in total denial about reality. Like Ben Bernanke in 2007 declaring subprime contained and not a threat to the economy, persistent inflation is suddenly a risk to the economy when it supposedly wasn’t all year long while the data clearly kept saying that it was.” The analyst further added:
The Fed not only got inflation wrong but by extension they got policy completely wrong and I find myself very much validated here: They’ve totally overdone it on the liquidity front as they kept printing like madmen into an inflationary environment that they denied existed.
Grant Thornton Economist: ‘This Is Inflation That’s Not Likely to Be Insignificant Anytime Soon’
Grant Thornton chief economist Diane Swonk recently spoke with Rachel Siegel from the Washington Post. While she said inflation could subside in this instance, it can be problematic. “Yes, inflation can abate, but what [policymakers] care about is: Is it significant or insignificant to peoples’ lives and decision-making?” Swonk stressed. “This is inflation that’s not likely to be insignificant anytime soon, and that’s a problem.”
A longtime critic of the Federal Reserve, Peter Schiff believes the central bank’s schemes will just add more fuel to the fire. “Maybe the reason investors think the Fed can cure the worst inflation in U.S. history by lifting interest rates slightly above zero [is]Because even a slight rate rise will result in crashing the economy. This will, they believe, kill inflation. But in reality, it will extend its life,” Schiff saidFreitag
How do you feel about the U.S. inflation rate rising at an unprecedented pace since 1982? Please comment below to let us know your thoughts on this topic.
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