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10 Dec, 2021 10:07

US inflation on brink of hitting 40-year high

US inflation on brink of hitting 40-year high

Consumer prices in the US surged 6.8% year-on-year in November, which may be the highest since June 1982, analysts surveyed by DailyFX say.

It is also higher compared to October figures, when prices rose 6.2%.

Based on preliminary estimates, analysts say inflation in the US accelerated to 5.2% in November from 4.5% a month earlier, fueled by a variety of factors from wage pressure and shortages of workers, to supply chain problems and high demand for goods. Combined with the rapid recovery in industries that were affected by the Covid-19 pandemic, these factors drove up prices for everything from energy to property. The official report by the US Department of Labor regarding inflation will be published later today.

US President Joe Biden attempted to do damage control ahead of the report, releasing a statement late Thursday in which he drew attention to the recent declines in the prices of energy and used cars, seen as the two main drivers of inflation in the US this year.

The information being released tomorrow on energy in November does not reflect today’s reality, and it does not reflect the expected price decreases in the weeks and months ahead, such as in the auto market,” Biden said. He also noted that the “price of gas at the pump has already begun to fall nationally” after the latest inflation data was collected, while “real pump prices in 20 states are now lower than the 20-year average.

The US is not the only country where inflation has been smashing records. According to a press release this week from the German Federal Statistical Office (Destatis), inflation in the country also jumped to 5.2% from 4.5% a month earlier, reaching its highest level since June 1992.

For more stories on economy & finance visit RT's business section