By Harry Wilmerding
The Consumer Price Index increased 0.9% in October, bringing the key inflation indicator’s year-over-year increase to 6.2% as supply shortages continue and demand grows, the U.S. Bureau of Labor Statistics announced Wednesday.
The year-over-year inflation figure is an increase from September’s 5.3% level, marking the highest level in 30 years, according to the Bureau of Labor Statistics (BLS) report. Economists surveyed by The Wall Street Journal projected the CPI would increase to just 5.9% in October.
BREAKING: Consumer price index surges 6.2% in October, worse than expected and the highest since December 1990 https://t.co/YULL5KEIpI
— CNBC Now (@CNBCnow) November 10, 2021
The core price index, which excludes volatile categories like food and energy, jumped 0.6% in October, an increase from September’s 0.2% figure, according to the BLS. (RELATED: Treasury Nominee Blasted Manchin For Not Being ‘On The Democratic Side’)
“I do think we’re moving into a new phase where inflation is broader and where things are going to get a little more intense,” Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives, told the WSJ. “Part of that reflects that [supply-chain] bottlenecks are not resolved going into the holiday season, when a lot of purchases get made, and that the economy is doing really well, so you have strong demand.”
Food prices increased 0.9%, the same increase experienced in September, while the energy index jumped 4.8%.
The Federal Reserve announced on Nov. 3 that it would begin scaling back its monthly bond purchases by $15 billion starting in November to combat growing inflation. The Fed did not say it would raise interest rates from around the current near-zero level.