Inflation Surges at 13year High Amid Global Supply Chain Chaos
A customer shops for meat at a Safeway store in San Francisco, California on Oct. 4, 2021. (Justin Sullivan/Getty Images)
By Jack Phillips - October 13, 2021, Updated: October 13, 2021
U.S. consumer prices in September accelerated at their fastest annual rate in 13 years amid a spike in energy prices and supply chain disruptions, according to figures released by the Department of Labor on Wednesday.
Data released by the agency shows the consumer price index, which measures
what consumers pay for goods and services and serves as a key tracker of
inflation, rose about 0.4 percent in September from August, coming after it rose
0.3 percent in August from July. Over the past 12 months, prices increased 5.4 percent before seasonal adjustment, matching the largest yearoveryear gain since 2008.
The indexes for food and shelter increase in September, contributing more than
half of the “monthly all items seasonally adjusted increase,” said (pdf) the Labor
Department. Last month, the index for food rose 0.9 percent, the index for food
at home rose 1.2 percent, the energy index increased 1.3 percent, and the
gasoline index rose 1.2 percent, according to the agency.
“The index for all items less food and energy rose 0.2 percent in September,
after increasing 0.1 percent in August,” the department’s report said. “Along
with the index for shelter, the indexes for new vehicles, household furnishings
and operations, and motor vehicle insurance also rose in September. The
indexes for airline fares, apparel, and used cars and trucks all declined over the
month.”
Shortages in labor and materials coupled with shipping and supply chain
challenges have driven up the costs for producers, and many of those firms have
passed along those costs to consumers. That’s led to inflationary pressures that
have lasted longer than some analysts, including Federal Reserve Chairman
Jerome Powell, had predicted.
“Most people understand that supply chain disruptions and inventory shortages
are ongoing; there’s very little few people out there forecasting that those are
going to go away anytime soon … I think they’re on target for tapering,” said
Randy Frederick, the managing director of trading and derivatives for the
Schwab Center for Financial Research. “This data isn’t going to change any of
that. I think the thing to keep an eye on is bank earnings reports coming out this
week and the [producer price index] number.”
The persistent inflation will likely continue to create headaches for President
Joe Biden and his fellow Democrats as Republicans have frequently cast the
blame for the price surge on his administration’s policies. Also unclear is how
Biden’s federal COVID19 vaccine mandate that would target private businesses
with 100 or more employees will impact the economy and supply chain.
However, some Biden officials such as Treasury Secretary Janet Yellen believe
inflation will cool off as supply chains adjust.
“I believe it’s transitory, but I don’t mean to suggest these pressures will
disappear in the next month or two,” Yellen told CBS News on Tuesday night.
Follow The Labor Department’s report comes as the International Monetary Fund
(IMF) warned Tuesday about a rise in global inflation, downgrading its
predictions for global economic growth to 5.9 percent in 2021 due to COVID19
related concerns and supply chain disruptions.
“The outlook for the lowincome developing country group has darkened
considerably due to worsening pandemic dynamics. The downgrade also reflects
more difficult nearterm prospects for the advanced economy group, in part due
to supply disruptions,” Gita Gopinath, the head economist at the IMF, said in
the report.
Reuters contributed to this report.
Jack Phillips - BREAKING NEWS REPORTER
Jack Phillips is a breaking news reporter at The Epoch Times based in New York
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WHO and WHAT is behind it all ? : >
The bottom line is for the people to regain their original, moral principles, which have intentionally been watered out over the past generations by our press, TV, and other media owned by the Illuminati/Bilderberger Group, corrupting our morals by making misbehavior acceptable to our society. Only in this way shall we conquer this oncoming wave of evil.
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