Inflation might have met expectations, but those were not good expectations as prices have almost increased 7%, according to the latest data from the Bureau of Labor Statistics…(BLS)
- M-O-M: The Consumer Price Index for All Urban Consumers increased 0.8% in November, a slight drop from the 0.9% growth in October,
- Y-O-Y: CPI increased 6.8% when compared to November 2020, an increase from 6.2% in October which is exactly what economists had projected.
Leading the inflation charge for the year was gasoline which is up 58.1% when compared to November 2020 followed by used cars & trucks up 31.4%, new vehicles (+11.1%), Commodities (+9.4%), and food (+6.1%)
- FOOD prices saw some of the biggest jumps with beef & veal up 20.9% followed by pork (+16.8%), Chicken (9.2%), Seafood (+8.0%), and coffee (+7.5%).
- NOTE: Food at home actually saw a bigger increase (6.4%) than food away from home (+5.8%)
The biggest monthly increase was gasoline which is up 6.1% from October followed by used cars & trucks up 2.5%, apparel (+1.3%), new cars (+1.1%), and commodities (+0.9%)
Not surprisingly, there were a lot of opinions about inflation and what it means going forward…
- NEIL IRWIN says the rumored double taper from the Fed is defintelt on now. “The accelerated taper is not just on, it is verrrry much on.”
- HEATHER LONG said high prices aren’t going away anytime soon. “It’s clear that high inflation is not going away any time soon. Yes, December may see some relief on gas prices. But rents continue to rise, food prices (esp. meats) continue to rise, and car/furniture/goods prices remain high.”