Consumer Price Index Sees Largest 12 Month Increase in 30+ Years Consumer Price Index Sees Largest 12 Month Increase in 30+ Years
inflation

Consumer Price Index Sees Largest 12 Month Increase in 30+ Years

Amid the United States’ continued efforts to recover from the pandemic and get Americans back to work, one of the biggest economic stories in recent months has involved inflation. Anecdotally, many consumers have reported seeing prices on essentials rise, impacting their personal finances. Now, the Bureau of Labor Statistics’ October Consumer Price Index shows that prices are not only increasing but are doing so at levels not seen in three decades.

As CNBC reports, the Labor Department’s latest report shows the consumer price index rising 6.2% over the past 12 months ending in October 2021. This marks the largest 12-month increase observed since November of 1990. Looking at just the single month, the index rose 0.9% to tie June’s rate.

Looking closer at the goods and services that make up the overall consumer price index, fuel costs represent the largest year-over-year increase. Last month, fuel oil prices climbed 12.3% as the 12-month increase reached 59.1%. Another sector seeing large increases is autos, especially used vehicles. Over the past 12 months, used car and truck prices have climbed 26.9% while growing 6.6% in the past month. Meanwhile, new car prices increased 1.4% in October and 9.8% over the past year.

Turning to food prices, while gains have been more modest compared to energy and car pricing, they’ve still seen significant increases. Overall food prices (including both “food at home” and “food away from home”) rose 0.9% in October. That puts the 12-month figure up 5.3%, with “food at home” coming in at a slightly higher 5.4% increase.

Putting these price increases into context, a separate Labor Department report shows average hourly earnings for U.S. employees only increased 0.4% from September to October. In other words, the seasonally adjusted “real average hourly earnings” fell by 0.5% due to the 0.9% increase in prices. Looking at the past year, real average hourly earnings have now decreased by 1.2%.

Despite the figures currently being seen, Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen have both suggested that the inflation being observed will be temporary and is related to various pandemic-era issues. In fact, these policymakers anticipate normalization to occur within the next year. However, it’s unclear what will happen in the meantime — although Principal Global Investors chief strategist Seema Shah told CNBC. “Inflation is clearly getting worse before it gets better, while the significant rise in shelter prices is adding to concerning evidence of a broadening in inflation pressures.”

Ultimately, given the real-world impact that inflation has on everyday Americans, this will continue to be a major source of consternation as we move forward. This is especially the case as we move into the holiday season with supply chain fears already spreading to consumers. With political pressure also growing as a result, we’ll have to wait and see what steps, if any, are taken to try to relive some of these issues as the U.S. continues to strive for normalcy.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...