According to brand new numbers, the CPI (Consumer Price Index) soared to 6.8 percent in November, the highest rate of inflation since 1982.
The Details: The core consumer price index, which excludes prices for food and energy, rose to 4.9 percent in November.
Prices rose 0.8 percent month over month from October’s numbers.
The numbers mark the six straight month of rising inflation, causing Federal Reserve Chairman Jerome Powell to now retire the term ‘transitory’ as a descriptor for the phenomenon.
Why it Matters: The Biden Administration has come under increasing pressure over the rapid rise of inflation, with many voters feeling financially squeezed as they witness their real purchasing power decrease.
What People are Saying:
Core inflation up 0.5% for the month and 4.9% on an annual basis, highest in 30 year. Points to “transitory” having been one of the worst inflation calls by the #FederalReserve in history, and one that heightens the risk of a major policy mistake causing undue harm to livelihoods
— Mohamed A. El-Erian (@elerianm) December 10, 2021
Biden said inflation was transitory, but it isn’t. He said illegal immigration was seasonal, but it’s not. He said he’d get all Americans out of Afghanistan, but he didn’t. He said he wouldn’t enact a vaccine mandate, but he did.
He’s constantly wrong. https://t.co/yKG78POPNx
— Ari Fleischer (@AriFleischer) December 10, 2021
Correct. Inflation is not coming from wage rigidity, money supply, or supply chain disruptions; all these are bubkes. It is in the >$120 Trillion of paper money (70 in US) (includes ~$3 T of crypto).
Low interest rates (discount factor) inflate assets. Paper money is just air. https://t.co/iv3OVgzm7h
— Nassim Nicholas Taleb (@nntaleb) December 10, 2021