US inflation surges to near-40 year high, testing Joe Biden
- Consumer prices in November jumped 6.8 per cent, the biggest gain since June 1982 as prices for petrol, used cars, rent, food and other goods continued to climb
- This poses a political liability for the president, with the Republican opposition using it to argue against his economic policies
The Labour Department’s consumer price index (CPI) jumped 6.8 per cent compared to November of last year, its biggest gain since June 1982 as prices for petrol, used cars, rent, food and other goods continued to climb.
While the report contained signs that the inflation wave may be reaching a crest, it nonetheless poses a political liability for the president, with the Republican opposition using it to argue against his economic policies.
Biden countered that the report did not encompass recent declines in prices of energy and used cars, two main drivers of the high inflation readings seen this year, and that supply chain issues that have driven prices higher are being resolved.
“Today’s numbers reflect the pressures that economies around the world are facing as we emerge from a global pandemic – prices are rising,” Biden said in a statement, adding that “price and cost increase are slowing, although not as quickly as we’d like”.
