U.S. Inflation Hit a 39-Year High in November

 Link: https://www.wsj.com/articles/us-inflation-consumer-price-index-november-2021-11639088867?mod=world_trending_now_article_pos4

MLA: Guilford, Gwynn. "U.S. Inflation Hit A 39-Year High In November ". WSJ, 2021, https://www.wsj.com/articles/us-inflation-consumer-price-index-november-2021-11639088867?mod=world_trending_now_article_pos4. Accessed 11 Dec 2021.

During the month of December, U.S. inflation reached a near four-decade high, as consumer demand has collided with pandemic-related supply constraints.

The consumer price index has risen 6.8% which measures what consumers pay for goods and services, according to the Labor Department. The increase in prices for new vehicles came in at 11.1% in November which was the largest on record. Apparel and home goods even broke records, leaving the fast-food industry prices not far behind as there was a sharp increase as well. 

The steady rise in prices signals the increase in wages in all-around industries since there is a shortage of workers which is offset by companies pushing to raise prices and compensate for higher labor costs. However, with the new omicron variant, new threats could be posed considering it's just the second year of the pandemic, and supply and demand are still recovering from its imbalances. Eighty percent of companies surveyed detailed increased labor costs, with another seventy-two percent saying their suppliers have also raised prices. This makes it incredibly difficult for companies to get goods to sell to consumers. 

Economists have hopes to see pressures of supply constraints easing throughout 2022 as many workers are returning and consumer demand is exasperating.