Inflation Surge Peaking 📈

Inflation Surge Peaking

Inflation across a broad number of products that consumers buy every day was even worse than expected in October, hitting its highest point in more than 30 years, the Labor Department reported Wednesday.

Inflation is broadening out,” said Greg McBride, chief financial analyst at Bankrate. “In addition to food, energy, and shelter continuing to post outsized monthly increases, new and used car prices are once again shifting into overdrive.”

The rate of consumer price increases jumped to a three-decade high in October as supply chain disruptions and holiday-shopping demand fuelled inflation across a range of industries.

The consumer price index, which is a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% from a year ago, the most since December 1990. That compared with the 5.9% Dow Jones estimate.

Hot inflation reports have led some of the nation’s top economists to believe inflation may stick around a bit longer than expected before it declines.

Some traders and economists think inflation reflected in the consumer price index might have peaked in October. That expectation is based on a recent steep decline in the Baltic Dry Index, a popular measure of global shipping rates used by economists as a leading indicator for inflation.

“Inflation is still high, and the speed at which supply, and demand catch up will vary,” said one economist. “But it looks like, in aggregate, that the worst of the runup in import inflation might be over.”

How long will this inflation surge ultimately last for the U.S. economy?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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