The rate of inflation highest since 1982!
12/13/2021, 10:14:25 AM
According to the Bureau of Labor Statistics, the consumer price index (the CPI), rose by zero-point-eight percent in November. Adjusted for seasonality, inflation during the first 10 months of the year rose at an exceptionally high rate of 6.9%. For the last 12 months, the inflation rate was 6.8%, the highest inflation rate for any 12 months since March 1982, a 39-year high. While this is numerically correct, it is also hype; numbers, absent context, often do that. For example, the economy was in recession; inflation was almost half-a-percent for the first 11 months of last year. A more accurate inflation assessment is when it is compared with November 2019, skipping the COVID-recession year, then average annual inflation becomes a more reasonable rate of 4.0%. So does this mean that this is all hype? Unfortunately, that is not correct either; monthly inflation calculated at annual rates was 9% or higher in 4 out of the last 11 months.