U.S (Washington Insider Magazine) -For the first time in 31 years, the United States’ inflation rate reached an all time high.
Consumer prices jumped 6.2 percent in October from last year, which was the fastest pace through 12 months since 1990, and the fifth straight month with inflation over five percent. The increases include houses, cars, gas and groceries in the pandemic era.
Vacation spots and restaurants also had to increase prices as Americans could not wait to dine out and travel once restrictions were lifted.
“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,” Bankrates chief financial analyst Greg McBride said.
Since 2011, the inflation rate had not been over three percent, which was the highest it had been until 2021. The lowest was in 2015 at 0.7 percent.
The first two months of 2021 were the lowest it had been all year, at 1.4 and 1.7 percent in January and February, respectively. There was a 1.6 percent spike between March and April, however, and neber went down since then except a 0.1 percent decrease between July and August.
Officials were not expecting a spike, but with businesses reopening after the lockdown in 2020, some of them could not keep up with the demand for used cars, toys, computers, television, and furniture. Officials also said it is unlikely the inflation rate will decrease any time soon.
“Further, the bottlenecks throughout the supply chain will be with us well into 2022, and with that, upward pressure on prices,” McBride said.
Officials from the Senior Federal Reserve said otherwise, mentioning the increase is only temporary. According to MarketWatch, the officials said it will subside next year after the pandemic ends. More people will be back to work, and the economy will recover.
Since the beginning of the year, jobs have been hiring at an alarming rate. Most people quit their jobs because of low wages, causing businesses to increase their hourly rate to get more people to work for their establishment. Wages were increased 4.6 percent since 2020, according to CNBC.
As of August, there were over six million people who were hired in 2021, but nearly six million separations – voluntary quits, involuntary layoffs, and retirements – as well, according to Statista. Since 2020, however, Employers lost 22 million employees because of the pandemic.
