American consumers bought a lot of basic necessities last month such as food, fuel, and shelter, as rising global economic prices continued.
How do prices rise?
For several months, inflation has been the hallmark of global economic growth this year since last year’s COVID-19 epidemic. And in the United States – the world’s largest economy – inflation continues at an unprecedented level for three decades.
U.S. consumer prices rose 6.2 percent in October since the same period last year, the U.S. Department of Labor said on Wednesday. This is the fastest pace since 1990 and continues beyond what many experts have already said about rising prices.
On a monthly basis, the Consumer Price Index (CPI) rose 0.9 percent in October, after rising 0.4 percent in September.
National barriers and lack of production equipment and logging workers the highest for US businesses, which is increasingly leading to increased revenue for American consumers.
The biggest impact on US economic health given two-thirds of its size is driven by consumer spending.
Meanwhile, the US Federal Reserve, the Federal Reserve, is not worried about rising inflation this year, insisting that inflation will be temporary and ultimately lower.
The Fed has decided to restructure bonds that have helped boost the economy during the epidemic. But it said this should not be taken as a signal that they are ready to raise interest rates – the most powerful tool available to slow inflation – soon.
US consumers at the moment are looking for more pain in their pockets, with the most recent monthly survey of consumer expectations by the New York Fed showing the average mid-year inflation expectations for the next year has come a long way.
Consumers often experience higher prices in exchange for more expensive and cheaper types or simply leave without goods and services that they can stop buying until the next day, when the volatility of the stickers may decrease.
Other purchases, however, cannot be delayed – such as food, fuel, and shelter. This is why rising prices mainly affect low-income families because they earn a large portion of their income to meet basic needs.
The rise in consumer inflation in October was driven by strong, with prices rising 4.8 per cent since last month and 30 per cent in the last 12 months.
In the electricity sector, oil prices rose 6.1 percent in October and about 50 percent from the same period last year.
Food prices rose 0.9 percent in October after rising 0.4 percent in September, while sleep prices rose 0.5 percent last month.
The so-called core CPI, which eliminates food and energy, rose 0.6 percent in October since last month, driven largely by high car prices due to a reduction in the number of semiconductors that are rich in automotive and automotive manufacturing. very expensive.
Renting higher housing also increases the CPI.
“Of particular concern to the Fed should be signs that long-term inflation continues to grow rapidly, with the CPI rental for start-ups and owners bringing a strong profit of 0.4% m / m,” said Andrew Hunter. US financial analyst at Capital Economics in a client journal. “As labor market growth and past gains in housing prices continue, other gains in home prices appear to be growing.”
The effects of declining labor on consumer prices were reflected in the “off-home nutrition” category of CPI. This rose by 0.8 per cent in October, indicating a significant increase in this year’s wage for workers in the holiday and hospitality industry.
But this year’s payoff is not in line with rising commodity prices, which has left many families behind as prices grow.
Last month, the average hourly wage was 4.9 percent higher than the same period last year.