Inflation hits all time high
Published 8:05 am Thursday, December 23, 2021
If you have bought a gallon of milk, a gallon of gas, a used car or shopped at the Dollar Tree, you know inflation is at an all-time high.
According to Trading Economics, the annual inflation rate in the U.S. accelerated to 6.8% in November, the highest since June 1982.
It marks the ninth consecutive month the inflation stays above Federal Reserve’s 2% target as global commodities rally amid rising demand, reluctant workers, wage pressures and supply chain disruptions.
According to the Bureau of Labor Statistics, consumer prices rose at a 6.2% annual rate, well above expectations, which was the biggest 12-month jump since 1990.
“Consumers are feeling it in the pocketbook at the gas pump, grocery store, and tenants in many parts of the country could get sticker shock at their next lease renewal,” Greg McBride, chief financial analyst at Bankrate, said.
Consumers are also feeling the price increase when eating out.
According to Pino’s in Farmville, beef prices are up 47%, Chicken is up 40%, Pork 51%, and crabmeat is nonexistent and 50% if found.
Take a trip to the Dollar Tree, and the once “everything is a dollar” is now $1.25.
“This is the appropriate time to shift away from the constraints of the $1 price point,” the company said in a news release. “Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide. Accordingly, we have begun rolling out the $1.25 price point nationwide at all Dollar Tree stores.
According to Trading Economics, inflation also increased energy costs showing the biggest gain (33.3% versus 30% in October). Others include apparel (5% vs 4.3%); medical care services (2.1% vs 1.7%), food (6.1% vs 5.3%, the highest since October 2008).
The increase in inflation does not seem to be on the downward slope just yet, as forecasters expected inflation to be 6.3% by the end of this quarter.