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The United States has its highest level of inflation in 30 years; consumer prices skyrocket

The high consumer prices, threaten to embitter the Christmas. On USA, the inflation increased more than expected, reaching record levels, due to persistent problems in the global supply chains that notably affect the energy prices.

The cost increase was 0.9% in October compared to 0.4% in September; but compared to October 2020, costs rose 6.2%. This is the largest increase since November 1990.

The inflation is generalized for all sectors, although it is particularly notable in the energy, housing, food and vehicles.

The energy costs were up 4.8% from September to October. Gasoline, natural gas and oil have become more expensive for the same reason as other products: Demand has exploded as Americans are traveling by air and land again and supply has not been able to match.

Economists agree that inflation will dissipate once supply chain problems are resolved and consumer trends return to their pre-pandemic levels. As the health crisis subsides, Americans will spend more on travel, entertainment, and other services and less on products like cars, furniture, and household appliances.

However, no one knows how long that will take and the truth is that inflationary trends have lasted longer than predicted; price increases are spreading to other sectors, not just vehicles or household appliances.

In that sense, US President Joe Biden admitted yesterday that consumer prices “remain very high” in the country, an inflationary pressure that overshadows his ambitious investment plans. “A lot of people are still worried about the economy and we all know why,” he said.

By Reuters and AP

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