Consumer inflation hits nearly 40-year high

Americans in November saw prices jump 6.9 percent from the year before. That’s the highest annual inflation rate since 1982. The increased prices have affected everything from food and fuel to used vehicles and household goods. Gasoline prices are up more than 58 percent from a year ago, but even excluding fuel and food costs, core prices have climbed nearly 5 percent. The Labor Department on Friday reported that prices rose 0.8 percent from October to November—a slower increase than the month before.

What’s causing the inflation? Governmental responses to the recession during the COVID-19 pandemic, including stimulus checks and low interest rates, are partly to blame. Increased consumer demand and supply chain issues also caused shortages of some products, driving up prices. Many employers are raising wages in the face of worker shortages, often increasing prices to offset the cost.

Dig deeper: Listen to Nick Eicher and David Bahnsen discuss how much inflation is too much on the Moneybeat segment of The World and Everything in It.