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Inflation Hits Highest Level In 39 Years


Reported by HARRY WILMERDING | CONTRIBUTOR | December 10, 2021

Read more at https://dailycaller.com/2021/12/10/inflation-consumer-price-index-joe-biden-jerome-powell-bureau-labor-statistics/

joe-biden-november-inflation
(Photo by Chip Somodevilla/Getty Images)

The Consumer Price Index (CPI) increased 0.9% in November, bringing the key inflation indicator’s year-over-year increase to 6.8%, the highest figure in four decades. The CPI’s increase is the largest increase in four decades, up from October’s 6.2% according to the U.S. Bureau of Labor Statistics (BLS) report released Friday morning. Experts surveyed by CNBC projected inflation would increase 0.7% in November, translating to a 6.7% gain on a year-over-year basis.

“These are frighteningly high inflation numbers, the likes of which we haven’t seen for decades,” Allen Sinai, chief global economist and strategist at Decision Economics, Inc., told The Wall Street Journal.

The core price index, which measures inflation of goods less food and energy, jumped 0.5% in November, a decrease from October’s 0.6% increase, according to BLS. Price increases in gasoline, shelter, food, used cars and trucks and new vehicles were among the largest contributors to the index’s jump in November, BLS said. Food prices increased 6.1% on a year-over-year basis, and energy prices soared 33.3% over the last year and 3.5% in November.

Meanwhile, the labor market continues struggle to recover from the COVID-19 pandemic, and the emerging Omicron variant has brought new concerns.

“We have tremendous spending by consumers. A lot of people are getting hired. Demand is huge. Monetary policy remains very easy and fiscal stimulus has no precedent in history,” Sinai said.

The U.S. economy added just 210,000 jobs in November, far below experts’ projections of around 573,000, but unemployment slipped to 4.2% from October’s 4.6% figure. The number of Americans who filed new unemployment claims totaled 184,000 in the week ending on Dec. 4 as employers fight to retain workers entering a busy holiday season.

“Looking past the noise, we think claims will eventually hover more consistently around pre-pandemic levels of 220k, assuming the Omicron variant of the coronavirus has only a moderate negative impact on the economy,” Nancy Vander Houten, lead economist at Oxford Economics, told the Daily Caller News Foundation.

Soaring inflation and falling unemployment have triggered Federal Reserve Chairman Jerome Powell to pivot away from pandemic era stimulus programs. Powell signaled that the central bank would wind down its bond-purchasing stimulus, which will lead to earlier-than-expected interest rate hikes.

The central bank is scheduled to meet Dec. 14-15, when a more detailed schedule is slated to be announced.

November Jobs Report Is One Of The Worst Since Biden Took Office


Reported by HARRY WILMERDING | CONTRIBUTOR | December 03, 2021

Read more at https://dailycaller.com/2021/12/03/november-jobs-report-joe-biden-jerome-powell/

President Biden Arrives Back At The White House
Anna Moneymaker/Getty Images

CORRECTION: This story has been updated to reflect that the number of jobs created in November is among the lowest initially reported for a single month in 2021.

The U.S. economy added 210,000 jobs in November, marking nearly the lowest number of jobs created in a month since President Joe Biden took office in January.

November’s jobs report was well below economists’ estimate of 573,000, according to CNBC. Additionally, unemployment fell to 4.2% from October’s 4.6% figure, according to the Bureau of Labor Statistics. 

The U.S. economy, still recovering from the COVID-19 pandemic but now subject to uncertainty related to the Omicron coronavirus variant, appeared to slow in momentum in November, The Wall Street Journal reported.

“Just as Delta derailed the recovery in terms of the labor market, if Omicron behaved like that, I would guess it would hold back any recovery in the labor market,” Justin Weidner, an economist at Deutsche Bank, told the WSJ.

“Greater concerns about the virus could reduce people’s willingness to work in person, which could slow progress in the labor market and intensify supply-chain disruptions,” Federal Reserve Chairman Jerome Powell said in Senate Banking Committee testimony on Tuesday.

The BLS initially reported that 194,000 jobs were added to the economy in September, the lowest number of new jobs for a single month in 2021, but that figure was revised substantially in October to 312,000 jobs, CNBC reported.

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