According to data released on December 10, 2021, the core Consumer Price Index, which measures the price of goods and services, grew by 0.5% in November. The core CPI excludes food and energy. Per an Axios report, the headline CPI figure measures the price of all items.
In sum, prices climbed upward by 0.8% for the month. According to Fact Set, these price increases were higher than the projected 0.7%. The 0.5% monthly increase for the core CPI is in line with the 0.5% rise economists were predicting
Energy prices have increased by 33.3% since November of 2020, which includes a 3.5% increase in November. Gasoline prices rose by 6.1% in November. Overall, gas prices increased by 58.1% over the last year.
Similarly, price indices for rent grew by 0.4% in November compared with the previous month.
“Today’s numbers reflect the pressures that economies around the world are facing as we emerge from a global pandemic — prices are rising,” President Joe Biden declared on December 10.
“But developments in the weeks after these data were collected last month show that price and cost increases are slowing, although not as quickly as we’d like,” he continued. “The challenge of prices underscores the importance that Congress move without delay to pass my Build Back Better plan, which lowers how much families pay for health care, prescription drugs, child care, and more.”
“Inflationary pressures are building in the economy and that is going to force the Fed’s hand,” declared Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
There is increased speculation on Wall Street that rising levels of inflation in the American economy could compel the Federal Reserve to take hawkish action and raise interest rates to curb inflation.