Market Watch: U.S. Inflation Rate Swells to 39-year High of 6.8% as Americans Pay Higher Prices for Almost Everything

Article by Jeffry Bartash in Market Watch

The cost of living climbed again in November and drove the rate of U.S. inflation to a nearly 40-year of 6.8%, putting more pressure on households as they confront rising prices of gas, food, cars, rent and so forth.

The consumer price index increased 0.8% last month, the government said Friday. Economists polled by The Wall Street Journal had forecast a 0.7% advance.

The pace of inflation over the past year escalated to 6.8% from 6.2% in the prior month. That’s more than triple the Federal Reserve’s 2% target and is the highest rate since July 1982.

The 12-month increase in the core rate climbed to 4.9% from 4.6% and remained at a 30-year peak. The last time the core rate reached 5% was in mid-1991.

Soaring inflation is outstripping the biggest increase in worker wages in decades. Inflation-adjusted hourly pay was 1.9% lower in November compared to a year ago. Paychecks aren’t buying as much as they used to buy.

Big picture: The stunning surge in U.S. prices this year could peak in the next few months as supply-chain bottlenecks are gradually undone, but high inflation is likely to last well into 2022.

The cost of gasoline jumped 6.1% in November. Fuel costs about 60% more than it did a year ago, but consumers could get a break in the next few months. Prices have fallen in the past few weeks and could decline even further.

Food prices rose 0.7% last month and show little sign of letting up. The cost of groceries have climbed 6.4% in the past year, the biggest increase since 2008.

What they are saying? “U.S. inflation was even hotter than expected in November and is now running the fastest in nearly four decades, with .......

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