The Bureau of Labor Statistics announced prices rose at their speediest annual pace since 1990, while wholesale prices reached the highest yearly pace in records going back nearly 11 years, tied for the highest ever.
Consumer prices are soaring higher and faster
The steep climb and rapid pace of higher prices isn’t your imagination. On Wednesday, the Bureau of Labor Statistics published the Consumer Price Index (CPI), showing prices for consumers rose 6.2 percent in October over the previous year. The leap represented the fastest annual pace since 1990, as well as a steep climb from September’s level of 5.4 percent, Financial Times reported.
Reuters also reported that the US consumer price index exceeded 6 percent last month.
The month-over-month price gains made a jump of 0.9 percent, a markedly sharp pace from August to September, where prices rose 0.4 percent. Even when stripping out volatile items, such as food and energy, prices still rose 0.6 percent in October versus a 0.2 percent climb in September.
Analysts blamed disruptions and bottlenecks in the supply chain and broader inflationary pressures that are spread throughout the economy as the primary forces driving the higher-than-expected increases in consumer prices during October.
Consumer prices hit a 31-year high
Financial Times posted a graph showing the years 1990 through 2021, showing the annual percentage change in the consumer price index (CPI) now reaching a 31-year high. Inflation was barely above zero percent in 2020 and now has shot past six percent.
Wholesale prices hit nearly 11 year high, tied for highest ever
This week the Labor Department released its most recent Producer Price Index Report, which measures wholesale prices, showing an increase of 8.6 percent year over year. CNBC reported that the number represents the highest annual increase in nearly 11 years and tied for the highest jump ever.
October’s wholesale prices climbed 0.6 percent from September, driven by higher gasoline and automobile prices. The increase in wholesale prices was faster than the 0.5 percent increase in September over August.
Wholesale prices rose higher for goods than for services. The cost of goods in October rose 1.2 percent, while the price for services rose 0.2 percent. Construction prices climbed 6.6 percent.
One-third of the price increase for goods was gasoline, which rose 6.7 percent.
A few things dropped in price, including beef and veal, which fell 10.3 percent. There were also drops in the price of light trucks and the cost of residential electric power.
