US Consumer Price Index leaps to 31-year peak as gasoline, food prices skyrocket

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US Consumer Price Index leaps to 31-year peak as gasoline, food prices skyrocket

On Wednesday, the US Labor Department data had unveiled that its closely-monitored inflation indicator, Consumer Prices Index, had surged by the steepest pace in 31 years last month on an annualized basis, mostly flared up by a fanatically farcical rise in the prices of raw materials amid a lingering supply chain constraint, while American consumers had reportedly laid off a large chunk of their wages on gasoline and foods, both raw and processed.

With US Consumer Prices Index (CPI) hitting a 31-year peak of 6.2 per cent over past twelve months through October, several analysts were quoted saying following the data that a staggering leap in US inflation indicators would more likely to stay comfortably higher deep into 2022.

Aside from that, other economic data released earlier on the day had unveiled that the number of Americans filing for initial jobless claims fell to a 20-month low last week, though a chronic labor shortage has been ramping up the wages higher, eventually feathering up inflations further.

US Consumer Prices Index rises strongly in October

According to US Labor Department data, US CPI had climbed as much as 0.9 per cent on October that followed a September CPI of 0.4 per cent, remarking the largest monthly gain in four months, while US CPI had reported an annual increase of 6.2 per cent on a year-on-year basis, the strongest since 1990.

Besides, US weekly initial jobless claims fell 4,000 on an adjusted basis to 267,000 during the week that ended on November 6, illustrating a strengthening in labor market recovery, though, continuing claims still hovered above an aching 2 million over the week that ended on October 30.

Nevertheless, although, a squeezed US labor market had been spurring up wages as beforementioned, a higher inflation was eating up a lion’s share of Americans’ earnings, adding political pressures to US President Joe Biden whose approval rating is said to have fallen sharply over recent past according to several voting polls, said the analysts.