US consumer prices rose at the fastest pace in almost 40 years last month, confirming fears that the inflation rally was showing no signs of slowing down and stepping up pressure on the US Federal Reserve to tighten its policy.
In particular, the consumer price index has risen by 6.8% since November 2020, according to data released by the US Department of Labor. The index has risen 0.8% since October, beating analysts’ estimates of a 0.7% rise in a Bloomberg poll.
The annual rise in inflation confirmed analysts’ estimates.
In October, annual inflation had climbed to 6.2%. The last measurement is more than three times the Federal Reserve target of 2% and the highest since July 1982.
Recent data boosts expectations that the Fed will be forced to accelerate the rate of decline in bond markets in the quantitative easing program launched in 2020 to address the coronavirus crisis, in order to pave the way for raising interest rates in mid-2022. .
Data from the Ministry of Labor also showed that construction prices, which do not include energy and food, increased by 4.9% from November 2021, reaching a 30-year high. On a monthly basis, construction prices increased by 0.5%.
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Source From: Capital
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