Economics/Class Relations

Strong demand and likely the holidays pushed inflation to a ‘nearly four-decade high’ last month

By Brigid Kennedy The Week

Inflation surged 6.8 percent from a year ago in November, coming in slightly above estimates, CNBC reports, per the latest consumer price index released Friday. After removing volatile food and energy prices, the CPI (which measures what consumers pay for goods and services) rose 4.9 percent from a year ago — in line with expectations.

What’s more, inflation accelerated at its fastest pace since 1982 last month — a “nearly four-decade high” — “putting pressure on the economic recovery and raising the stakes for the Federal Reserve,” CNBC writes. Prices for vehicles, rent, furniture, and airlines fares jumped, while those for recreation and communication dropped, adds The Wall Street Journal.

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