Consumer prices grew far faster than expected in October, according to data released Wednesday by the Labor Department.
The consumer price index (CPI), which tracks inflation for a range of staple goods and services, rose 0.9 percent last month and 6.2 percent in the 12-month period ending in October, the highest rate in the U.S. in 30 years. Analysts broadly expected the CPI to rise by 0.5 percent last month, up from a gain of 0.4 percent in August, and 5.8 percent over the past year.
The sharp jump in the inflation rate is a dismal sign for President Biden and Democrats as they face growing pressure over rising pieces. Despite strength across the economy, the president’s approval rating has fallen steadily since spring due in part to growing political backlash over higher food and gas prices.
Much of the year’s inflation had been driven in specific sectors hit hard by the pandemic and related shortages, such as automobiles, lumber, rented housing and energy. But price growth picked up broadly across the economy in October, and accelerated sharply for energy and food.
“The monthly all items seasonally adjusted increase was broad-based, with increases in the indexes for energy, shelter, food, used cars and trucks, and new vehicles among the larger contributors,” the Bureau of Labor Statistics explained.
Energy prices rose a staggering 4.8 percent in October, led by a 1.6 percent increase in gasoline prices, while food prices rose 0.9 percent. Most of the higher food inflation came from sharp increases for meat prices, while shelf-stable goods saw lower price growth.
Without food and energy prices, the CPI still rose 0.6 percent last month after a 0.2 percent increase in September. Only prices for airfares and alcohol declined in October.
Inflation began to pick up at the start this year as prices started to recover from pandemic-driven plunges. Economists expected inflation to remain above pre-pandemic levels as the economy recovered through spring, but price growth has run higher and for longer than many anticipated.
Consumer demand and spending rebounded much quicker than many businesses were able to handle after shutting down amid the onset of COVID-19 last year. As manufacturers, shipping companies, warehouses and retailers scrambled to meet surging demand, the emergence of the delta variant in late July upended much of that progress with rippling shutdowns across the world.
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JUST IN: Jump in inflation rate sharper than expected https://t.co/QwYDXlpeXb pic.twitter.com/9gsJatemsP
— The Hill (@thehill) November 10, 2021
And it’s all President Biden’s fault, the Trumpies say. According to them, the economy was wonderful under their orange god. They conveniently forget the problems we had, thanks to Donnie’s temper tantrum with China and the pandemic. They don’t even remember the empty shelves we saw at grocery stores last year.
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