'WASHINGTON (AP) — U.S. consumer prices rose 5.7% over the past year, the fastest pace in 39 years, as a surge in inflation confronts Americans with the holiday shopping season under way.
The November increase, reported Thursday by the Commerce Department, followed a 5.1% rise for the 12 months ending in October, continuing a string of annual price gains that have run well above the 2% inflation target set by the Federal Reserve.
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The big jump in the Commerce Department’s price gauge was similar to the rise in the consumer price index, up 6.8% for the 12 months ending in November, also the biggest surge by this measurement in 39 years.
While the CPI is the better known price gauge, the Federal Reserve prefers to follow the Commerce Department’s personal consumption expenditures price index in setting its interest-rate policies to fight inflation. The PCE price index tracks the actual purchases consumers are making each month while the CPI follows a fixed market basket of goods.
For the month of November, the PCE price index rose 0.6%, slightly lower than the 0.7% monthly gain in October. Core inflation, which excludes volatile energy and food prices, rose 0.5% in November. Core inflation has risen 4.7% over the past 12 months. That is the fastest pace for the core reading since a 5.1% rise in the 12 months ending in September 1983.
The 5.7% increase for overall inflation was the fastest 12-month gain since a 5.8% increase for the 12 months ending in July 1982.'
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Consumer prices up 5.7% over past year, fastest in 39 years, December 23, 2021 GMT
Context'Current policy and market structures ensure instability and persistent hardship.''The only cure for a Bubble is to not let it inflate.' - Dr. Kurt Richebacher(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'