Opinion: December 10, 2021. Inflation Rate at 6.8% (Annual Rate), Will it Continue to Climb?
The Consumer Price Index (CPI) rose 6.8% between December 2020 and November 2021 (12 months) as this publication of the Bureau of Labor Statistics shows. This represents an increase compared to the previous report. In October, the CPI increased 0.8%. This represents a 39 year high. The last time this index was higher was in June 1982.
The main drivers of this rise was price of energy. The energy index increased 33% in the past 12 months and within this index, gasoline increased 58.1.% and fuel oil 59.3% .
The inflation rate will continue to rise. Looking at the tables, the increase in prices still is not visible at similar rates in items such as food and services. Once they show up there the inflation rate will show higher. The creation of dollars (expansion of the monetary supply) out of thin air will inevitably lead an accelerated devaluation of the dollar.
Previous posts regarding the inflation rate
- July 15, 2021. Inflation Peaks as CPI Rises 5.4%
- September 12, 2021. 12-Month Percent Change in CPI is 5.4% in July 2021
- September 15, 2021. 12-Month Percent Change in CPI is 5.3% in August 2021
- October 13, 2021. 12-Month Percent Change in CPI is 5.4% in September 2021
- November 10, 2021. 12-Month Percent Change in CPI is 6.2% in October 2021