Inflation rate pushes higher

Prices for U.S. consumers jumped 6.8% in November compared with a year earlier as surging costs for food, energy, housing and other items left Americans enduring their highest annual inflation rate in 39 years.

The Labor Department also reported Friday that prices rose 0.8% from October to November — a substantial increase, though slightly less than 0.9% increase from September to October.

Inflation has been inflicting a heavy burden on consumers. It has also negated the higher wages many workers have received, complicating the Federal Reserve’s plans to reduce its aid for the economy. The Fed likely will act more quickly to phase out its ultra-lowrate policies than it had previously planned.

Fueling the inflation has been a mix of factors resulting from the swift rebound from the pandemic recession: A flood of government stimulus, ultra-low rates engineered by the Fed and supply shortages at factories in the U.S and abroad. Manufacturers have been slowed by heavier-than-expected customer demand, COVID-related shutdowns and overwhelmed ports and freight yards.

Employers, struggling with worker shortages, have also been raising pay, and many of them have boosted prices to offset their higher labor costs, thereby adding to inflation.

The result has been price spikes for goods ranging from food and used vehicles to electronics, household furnishings and rental cars. The average price of a used vehicle rocketed nearly 28% from November 2020 to last month — to a record $29,011, according to data compiled by Edmunds.com.