US inflation rises to its highest level in 30 years
According to IRNA; The US-based economic newspaper cited a lack of supply and strong demand from consumers as the main reasons for the rise in inflation, adding that Fed officials blamed the scale of inflation to determine whether the jump was temporary or permanent. Carefully monitor …
The Wall Street Journal added that one of the factors behind the jump, given the high probability of households asking for wages and accepting higher rates, is the readiness for further price growth based on consumers’ expectations of future inflation.
Senior economist Laura Rosenor-Warburton predicts that the United States will enter a six-month period of high inflation.
The Washington Times quoted the US Department of Labor as saying that wholesale prices at the end of October had risen 8.6 percent from the same month a year earlier, a new year-on-year record; This shows that there is no sign that inflation is easing in this country and it is bad news for consumers who are struggling with the shocks caused by rising prices.
The rise in prices indicates that the high inflation rate will continue in the country, although the government of President Joe Biden insists that inflation in this country is temporary.
The US Department of Labor said prices for clothing, footwear, truck transport, food and alcohol retail, hospital outpatient care, machinery, equipment, parts and supplies all rose last month.
Wholesale prices are what business owners pay for goods before they offer them to the public. As wholesale prices rise, most business owners raise the prices of their goods and pass the costs on to consumers.
Mercer University economist Antonio Saravia said rising prices and inflation in the country were worrisome, the highest figure in 11 years, and showed that inflation was not going down and that prices would continue to rise.
Gold Sash Investment Bank has warned that inflation in the United States is likely to worsen. The Biden administration emphasizes that the rise in prices is due to the temporary impact of the closure during the Corona epidemic.
Prices have risen at an unprecedented rate over the past 30 years, and this situation is deteriorating due to turmoil in the global supply chain.
The report also showed that the Producer Price Index (PPI), which measures changes in the prices of goods sold and services provided, has risen in the past month, in addition to sharp increases in food and energy prices. Producer price index increased by 6.2, which is an increase compared to October 2020 and is an unprecedented figure in more than 11 years.
According to the US Department of Labor, a 6.7 percent increase in gasoline prices represents a third of this increase. The US Energy Information Administration estimates that households that use natural gas for heating will have to spend 30 percent more this year than last winter. The agency, which provides statistics independent of the Ministry of Energy, said costs would rise to 50 percent if the winter cold was 10 percent above average.
The Biden administration’s actions have also helped boost inflation in the United States. The Federal Reserve has kept interest rates low, prompting business owners to demand more loans, which has boosted the money supply in the economy as a major cause of inflation.
US Federal Reserve officials said Monday that if inflation does not fall, they may raise interest rates before the end of 2022. Federal Reserve officials disagree on when interest rates will rise in late 2022 or early 2023, but appear to be forced to act sooner due to rising inflation.
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