Inflation Jumped 6.8% In November

Above, higher fuel costs is hitting consumers hard. Photo by Armand Vaquer.

"Inflation is growing at the fastest rate since the early eighties, and yet the Democrats on Capitol Hill continue to push for TRILLIONS in spending!" - Rep. Yvette Herrell (Rep. - New Mexico)

Well, here we go.

The report on the inflation rate for November is out and it is not good news.

From the Associated Press:

WASHINGTON (AP) — Prices for U.S. consumers jumped 6.8% in November compared with a year earlier as surging costs for food, energy, housing, autos and clothing left Americans enduring their highest annual inflation rate in 39 years.

The Labor Department also reported Friday that prices rose 0.8% from October to November — a substantial increase, though slightly less than 0.9% increase from September to October.

Inflation has been inflicting a heavy burden on consumers, especially lower-income households and particularly for everyday necessities. It has also negated the higher wages many workers have received, complicated the Federal Reserve’s plans to reduce its aid for the economy and coincided with flagging public support for President Joe Biden, who has been taking steps to try to ease inflation pressures.

Fueling the inflation has been a mix of factors resulting from the swift rebound from the pandemic recession: A flood of government stimulus, ultra-low rates engineered by the Fed and supply shortages at factories. Manufacturers have been slowed by heavier-than-expected customer demand, COVID-related shutdowns and overwhelmed ports and freight yards.

Let's not forget the excessive amounts the Democrats are spending in their "infrastructure" bill and the pending social spending bill that's in the senate currently.

Along with lower-income households, high inflation hurts those on fixed incomes such as those on Social Security (like I am). 

There's one thing during times of high inflation that had been beneficial, and that is interest rates of investment accounts. Investors had made more on interest on their investment accounts in the past. But right now, this doesn't seem to be happening as the Federal Reserve is keeping interest rates artificially low. People are getting next to nothing in their passbook accounts.

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