Inflation hits a 39-year high as economy struggles to recover from COVID-19

Inflation hit an almost four-decade high in November as consumer goods pricing bit its fastest growth seen in the last two decades, just a year into the current administration’s tenure. 

According to a report in Fox Business, the prices of gasoline, groceries, and almost everything else skyrocketed as the economy attempts to bounce back from the biggest shutdown in almost 100 years. 

“The consumer price index rose 6.8% in November from a year ago, according to a new Labor Department report released Friday, marking the fastest increase since June 1982, when inflation hit 7.1%,” Fox Business reported.

“The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 0.8% in the one-month period from October.”

These so-called “core prices” aren’t even taking into account the more easily influenced prices such as food and energy which leveled up almost five percent in November over the previous year.

It was also a big increase from October when the prices went up 4.6 percent, which was its steepest rate since 1991. 

“Economists expected the index to show that prices surged 6.8% in November from the year-ago period and 0.7% from the previous month,” Fox reported. 

Other prices were also bumped up, including energy prices which jumped 3.5 percent in November and are up 33.3 percent year over year.

Gasoline could be the most stunning increase of all with a 58.1 percent price jump over what it sold for a year ago. However, food prices have also climbed 6.1 percent higher over the year.

Not to be outdone, used car and truck prices, which are thought to be a major component of the inflation increase, are reportedly up 31 percent.

President Donald Trump has attempted to downplay the November increases, saying Thursday that the data does not yet reflect the upcoming downturn in gas prices or what his $1.7 trillion social spending and climate plan will do to assist the economy: 

“Fortunately, in the weeks since the data for tomorrow’s inflation report was collected, energy prices have dropped,” Biden said in a statement. “The information being released tomorrow on energy in November does not reflect today’s reality, and it does not reflect the expected price decreases in the weeks and months ahead, such as in the auto market.”

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