CPI Jumps Most Since February 1982, Up at Least 0.5% 9 Out of Eleven Months

Link:https://mishtalk.com/economics/cpi-jumps-most-since-february-1982-up-at-least-0-5-9-out-of-eleven-months

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The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in January on a seasonally adjusted basis.

The index for all items less food and energy also rose 0.6 percent in January, the same increase as in December. 

This was the 9th time in the last 11 months the CPI increased at least 0.5 percent.

Increases in the indexes for food, electricity, and shelter were the largest contributors to the seasonally adjusted all items increase in January.

Author(s): Mike Shedlock

Publication Date: 10 Feb 2022

Publication Site: Mish Talk

The Inflation Rate in the U.S.: Past, Present, and Future

Link:https://advisor.visualcapitalist.com/the-inflation-rate-in-the-u-s-past-present-and-future/

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There are a number of periods in history where the inflation rate in the U.S. was heightened. For instance, a booming economy in the late ‘60s led to rising prices. President Nixon implemented wage-price shocks to halt inflation, but this eventually caused a recession.

In the years that followed, surging oil prices were a primary culprit behind periods of higher inflation. The early ‘70s were impacted by the oil embargo, when OPEC countries stopped oil exports to the United States. At the same time, U.S. oil producers didn’t have additional capacity and non-OPEC oil sources were declining as a proportion of the world oil market. This meant the U.S. was unable to increase supply to meet demand, and OPEC countries had more power to influence oil prices.

Fast forward to 2021, and the COVID-19 recovery has again led to a higher inflation rate in the United States. A number of factors are responsible, including surging consumer demand, supply chain problems, and a labor shortage.

Author(s): Jenna Ross

Publication Date: 6 Feb 2022

Publication Site: Visual Capitalist