Just got a body blow. Since Ronald Reagan was president, inflation has been the highest for Joe Biden.
The Bureau of Labor Statistics said Friday that the Consumer Price Index rose 6.8% in November. The economists predicted a one-year gain of 6.7%. The October inflation rate of 6.2% was the highest since 1982, when Reagan was in the middle of his first term as president.
The index went up 0.8% in the month of June. The inflation rate cooled from the 0.9% surge seen in October, and that exceeded the median forecast for a 0.7% jump. The slowing pace suggests that inflation might have peaked this fall.
The average forecast was correct, as the CoreCPI was up by 0.5% through the month. Core measures aren't influenced by sudden moves in gasoline or grocery prices, so they are more telling of broad inflation trends.
The Friday release shows how hard the crisis hit businesses and shoppers. The recovery was still hampered in November by port and goods shortages. Strong demand crashed up against limited supply during the start of the holiday season.
US gas prices peaked in November. The national average has crept down to $3.35 since hitting $3.43 earlier in the month. It's not clear whether the Omicron variant will curb travel demand or if it will pull broad inflation to lower levels.
Democrats are under pressure as they push for another massive spending package. The party wants to pass the plan by Christmas, but Republicans are linking new spending to inflation.
Manchin expressed some concern about passing the measure in 2021. The centrist Democrat said Tuesday that inflation is not fleeting and that the Senate should focus more on inflation risk than jamming through more spending.
The need for people to believe in the bill that we're looking at is more important than the unknown we're facing. Manchin said that they have to make sure they get this right. We can't continue to flood the market.
The Friday data shows that the party has a harder road ahead before price growth slows.
Inflation increased in November.
The first look at where prices went up the most last month is offered by the report. The category saw prices climb 3.5% in November, with energy costs being the main driver of the inflation. The pace of the gasoline price increase was similar to that seen in October. Fuel oil inflation slowed to 3.5% from 12.3%.
Food prices rose in November, but at a slower pace than in October.
Through November, used car prices were 2.5% higher than the previous month. The category caused one-third of the inflation in the spring. The category is up more than any other product.
Shelter inflation was held at.05%. The category has been watched closely. It's less likely to reverse course if it speeds up, because it's stickier than other types. The US housing market has been white-hot throughout the year, but soaring home values have done little to drive shelter inflation higher.
