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11/10/21

USA: pressure on Fed to raise interest rates as US inflation surges to 30-year high | US economy

Although the Federal Reserve has repeatedly insisted price pressures will prove “transitory”, financial markets were taken aback by a 6.2% increase in the cost of living in the world’s biggest economy over the past year.

A labor department report released on Wednesday showed prices rose by 0.9% in October alone – more than double the 0.4% jump in September – to push the annual rate of inflation to its highest level since December 1990, a time when global oil prices had risen sharply due to the Iraqi invasion of Kuwait.

The news came after the Biden administration and the Federal Reserve tried to downplay rising costs, arguing they are a temporary phenomena driven by Covid-19’s unprecedented impact on the global supply chain

Read more at: https://www.theguardian.com/business/2021/nov/10/inflation-us-latest-high-30-years-economy-predictions?CMP=Share_AndroidApp_Other

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