November 10, 2021–The Consumer Price Index increased 0.9 percent in October and 6.2 percent for the year, the Bureau of Labor Statistics reported today.
While the rise in prices was “broad-based,” the cost of energy, shelter, food, and vehicles rose at higher levels, the BLS said. Meanwhile, prices of airline fares and alcoholic beverages declined.
Excluding food and energy, inflation still rose 4.6 percent, which was the “largest 12-month increase” since 1991. Over the last 12 months, energy prices increased the highest at a rate of 30 percent with fuel prices climbing by 49 percent.
In recent meetings, the central banks for Europe, Britain, and the United States predicted inflation would rise higher this year and into 2022. Yet all three monetary policy boards left interest rates at or near zero.
Producer Prices
Meanwhile, in China, the producer price index increased by 13.5 percent for the year. In the United States, producer prices inched up in October and indicated a 12-month increase of 8.6 percent. The U.S. BLS attributed three-quarters of the increase to a rise in the demand for energy.
White House Response
Responding to the economic news, President Joe Biden said he is instructing the National Economic Council to try to reduce energy costs and is asking the Federal Trade Commission to guard against price gouging or any market manipulation. Overall, Biden sounded positive about the economy, saying the economy is recovering.
“We are making progress on our recovery,” Biden said. “Jobs are up, wages are up, home values are up, personal debt is down, and unemployment is down. We have more work to do, but there is no question that the economy continues to recover and is in much better shape today than it was a year ago.”
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