In October, inflation reached a record level in the United States, above 6% over one year.
Inflation accelerated much more than expected in October in the United States, reaching an all-time high, due to persistent problems in global supply chains which notably drive energy prices.
The price increase rose 0.9% last month from 0.4% in September, according to the Consumer Price Index (CPI) released Wednesday by the Labor Department. Analysts were expecting 0.6%.
Compared with October 2020, prices increased by 6.2% against 5.4% in September. It is above the consensus which was counting on + 5.8%. This is the largest increase recorded since the end of November 1990, the ministry said in a press release.
The Fed still considers the phenomenon to be temporary
The increase is generalized to all sectors even if it is particularly important for energy, housing, food, used cars and trucks as well as new vehicles.
Excluding energy and food prices, the increase remains high at + 0.6% over one month, against + 0.2% in September. This is again above expectations (+ 0.4%).
“Inflation is stronger than expected”, admitted last week the President of the American Central Bank Jerome Powell, pointing out the difficulty of making forecasts in these unprecedented times of post-pandemic Covid-19.
But the Federal Reserve continues to believe that this reflects “largely factors that should be transitory.”
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