The US consumer prices surged to a near 40 year high of 6.8 per cent in November compared to the corresponding month in the previous year driven by higher prices for gasoline, food items, housing among other things. Inflation has been surging in the world’s largest economy for the last six months. The Guardian said that gasoline prices increased by 58.1 per cent in November – the largest increase over 12 months since 1980.
US President Joe Biden in a statement said, “"Today's numbers reflect the pressures that economies around the world are facing as we emerge from a global pandemic — prices are rising.”
Under criticism, Biden and his team have maintained that the price rise is temporary and is due to the Covid 19 pandemic, though many analysts have expressed their concerns as they said that the inflationary pressures could remain for a couple of years.
Shortage of components, increased demand for goods as industries recover after the Covid-19 pandemic-led disruptions are some of the main causes for high inflation.
Mitch McConnell, Republican Senate has come out strongly against Biden.
“This morning’s numbers confirm what every American family already knows: Inflation is out of control on the Democrats’ watch,” he said, adding that costs of essentials have skyrocketed.
“Wages have not even come close to keeping pace, so the average American has gotten a pay cut. It is exactly what experts warned Democrats’ reckless spending would cause,” he said.
