U.S. Inflation Surged 6.8% in November 2021, Higher than Expectations
Posted on 12/10/2021
As the Joe Biden administration wrestles on ideas to tame inflation and influence OPEC+ to pump more oil to alleviate U.S. consumer prices, institutional investors have shifted preferences toward real estate, private equity, and other assets that can hedge it. Inflation concerns pose a risk to U.S. consumer’s rosy picture. In November 2021, rose 0.8% for the month, good for a 6.8% pace on a year over year basis and the fastest rate since June 1982. Excluding food and energy prices, so-called core consumer price index (CPI) was up 0.5% for the month and 4.9% from a year ago. Energy prices have risen 33.3% since November 2020, including a 3.5% surge in November 2021. Gasoline alone is up 58.1%.
On another note, the U.S. Bureau of Labor issued a note: January 2022 CPI weight update. The note says, “Starting in January 2022, weights for the Consumer Price Index will be calculated based on consumer expenditure data from 2019-2020. The BLS considered interventions, but decided to maintain normal procedures.”
Link: https://www.bls.gov/cpi/notices/2021/2022-weight-update.htm
The University of Michigan Consumer Sentiment Index fell to 67.4 in November 2021 from 71.7 in October 2021 and is down from the slew of 80s measurements in the early summer months.