US CPI rose 6.8% year-on-year in November, the highest level since 1982, setting a new record again!
On December 10, the U.S. Department of Labor released the latest data showing that the U.S. CPI in November was at or above 5% for seven consecutive months. Market expectations were flat; it rose 0.8% month-on-month, higher than market expectations of 0.7%.
Excluding the volatile food and energy prices, the US core CPI rose 4.9% year-on-year in November, the highest level in 1991, the same as the expected value and 4.6% higher than the previous value. The chain rose 0.5%, the expected value of 0.5%, and the previous value of 0.6%.
Specifically, food prices have risen 6.1% over the past year. Service Inflation is also on the rise , service costs rose 0.4% in November and 3.4% in the past year, the fastest annual growth rate since April 2007.
The biggest driver of CPI growth is rising energy prices, The energy index has risen 33% over the past 12 months. Among them, the gasoline index rose by 58.1%, the natural gas index rose by 58.1%, and the electricity index rose by 6.5%. The fuel index was up 59.3%.
The housing index, which makes up a third of the U.S. CPI basket, rose 0.5% month-on-month, the highest level since 2007. The rent and landlord-equivalent rent indices both rose 0.4% month-on-month, the same increase as in October.
Another major factor driving inflation, the new and used car price index rose by 2.5% month-on-month, the same increase as the previous month. The new car price index edged down to 1.1% in November after rising 1.4% in October.
The leisure and entertainment index and the home decoration and business index increased by 0.8% month-on-month, the same increase as the previous month. The apparel index rose 1.3%.The Airline Fares Index recovered in November, rising 4.7% after falling in recent months.
Has inflation peaked yet?
U.S. inflation continues to rise, but markets expect it to rise to 7% by 2022. Deutsche Bank previously pointed out that in the next 12 months, U.S. inflation will continue to rise, reaching a maximum of 7%-7.25%, and the core CPI will rise to 6.2% in February and March next year.
The new debt king said that it is expected that U.S. inflation will remain above 4% in 2022, high inflation may remain in 22 years, and there is a chance that it will break 7% in the next few months.
Accelerating Taper is a foregone conclusion?
Higher inflation data raises the odds that the Fed will accelerate the tapering of its bond-buying program at next week's FOMC meeting, with the U.S. facing mounting inflationary pressures as energy and commodities move higher, the Fed needs to come sooner and sooner than expected. More interest rate hikes.
and a faster tapering would open the door for the Fed to start raising rates. At the same time, a number of economists and investment banks are betting that Taper will end in March next year and will start raising interest rates in the first half of next year.
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