Inflation Hits A Four-Decade High

By The Chicago Times Business Staff

December 26, 2021

NEW YORK —  A key measure of US inflation rose 5.7% in the 12 months ended in November.  According to the Bureau of Economic Analysis the Price Consumer Expenditure Price Index had the fastest increase in the consumer spending price index since 1982.  The PCE is the Federal Reserve’s preferred measure of inflation and informs the central bank’s policy decisions.

Stripping out energy and food prices, both of which jumped over the period, the price index advanced 4.7%, the biggest increase since September 1983.

The personal savings rate declined to 6.9%, a small decrease from the month before.  Indeed, prices climbed at a somewhat slower pace in November, rising 0.6 percent vs 0.7 percent in October.  Prices grew 0.5%, steady from the previous month, excluding volatile food and energy expenses.  Income in the United States increased last month, although not as swiftly as prices.