Perspectives: Annual Inflation Hits 39-Year High
Summary from the AllSides News Team
The Bureau of Labor Statistics reported Friday that consumer prices rose 6.8% in the 12 months ending in November — the largest yearly increase in 39 years.
Prices rose 0.8% in November after rising 0.9% in October, matching many economists' expectations. The report said that while inflation was broad-based, “larger contributors” included “gasoline, shelter, food, used cars and trucks, and new vehicles.” Stocks continued to climb on Friday, with the S&P 500 closing at a record high. The same day, a Google executive announced that despite raising record profits, the company would not automatically adjust employees’ wages for high inflation.
The inflation report renewed a debate around whether inflation was “transitory” and whether government spending was a major cause. Voices from the right tended to attribute high inflation to government spending and the Biden administration’s purportedly insufficient response. Voices from the left tended to downplay concerns about high inflation, attributing it to supply chain disruptions and a post-pandemic surge in consumer spending.
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From the Center
Hot November inflation report was probably the best the White House could have hoped for at this point
The Labor Department’s consumer inflation report showed that prices are still jumping.
But as hot as 6.8% year over year inflation is, Friday’s consumer price index report is probably the best the Biden administration could have hoped for at this point.
While virtually every economist expects inflation to stay high for the foreseeable future, some on Wall Street had worried before Friday’s data release that inflation could have leaped as high as 7% or more in November.
From the Left
The Inflation Suspense Goes On
Today’s consumer price report came as a huge surprise to almost everyone — because the numbers came in almost exactly in line with expectations, which basically never happens. Analysts whose job is to forecast what official numbers will say a few hours before they come out — a job of dubious usefulness, but whatever — expected the one-year rate of inflation to come in at 6.8 percent; it came in at … 6.8 percent. “Core” inflation that strips out volatile food and energy prices came in right on expectations too.
If there...
From the Right
Inflation — from WIN to DIN
And just like that, we’re back at the Volcker era — except there’s no Volcker in sight:
Colby Smith for the Financial Times:
US consumer prices increased at the fastest pace in nearly 40 years in November, piling more political pressure on the Biden administration as it seeks support for a massive spending plan.
The consumer price index, published by the Bureau of Labor Statistics on Friday, rose 6.8 per cent last month from a year ago — the fastest annual pace since 1982 and a significant pick-up from the 6.2 per...
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