Year-over-year inflation rose to 6.8% in November, the highest level since 1982, according to the US Bureau of Labor Statistics. Inflation was driven by dramatic rises in prices such as fuel oil by 59%, gasoline by 58%, used cars and trucks by 31% and piped gas by 33%. This marked the largest increase in gasoline prices since 1980.
In the food category strong inflationary pressures were noted in beef and veal with a 20% rise, and pork with a 17% while inflation of the price of food over the whole reached 6.2%. Another notable rise has been car rental which rose by 37% and peanut butter which rose by 13%.
Regionally inflation was strongest in the Midwest reaching 7.3%, followed by the South with 7.2% and the West with 6.5%. Inflation was lowest in the Northeast at 6%.
A recent opinion from researchers at the IMF noted that high inflation warrants a policy response from the Federal Reserve.
“We see grounds for monetary policy in the United States—with gross domestic product close to pre-pandemic trends, tight labor markets, and now broad-based inflationary pressures—to place greater weight on inflation risks as compared to some other advanced economies including the euro area,” noted the authors of the opinion. “It would be appropriate for the Federal Reserve to accelerate the taper of asset purchases and bring forward the path for policy rate increases.”