Inflation continues to remain hot in the United States as supply constraints and higher oil prices continue, seeing barrels of crude surge above $80 per unit. Meanwhile, data released on Friday indicates that consumer expenditures have risen to 4.4%, the highest run-up of inflation the country has seen in 30 years.
Inflation Continues to Rise in US
Americans are dealing with higher inflation levels these days as new data indicates that personal consumption expenditures have spiked in September to 4.4%. Reuters reports that the inflation run-up is “continuing a run of inflation at levels not seen in 30 years.” Americans losing purchasing power has been attributed to supply chain shortages, sky-high oil prices, and the ongoing Covid-19 procedures mandated by the Biden administration.
Reuters reporter Howard Schneider explains that the rising inflation levels in the U.S. could undermine Federal Reserve chairman Jerome Powell’s claims that inflation will be “transitory.” However, Cornerstone Macro economist Nancy Lazar believes Powell’s transitory claims will be correct. “We think deflation is the word” for the coming year, Lazar remarked. The economist added:
The inflation debate is going to shift to wages very, very quickly.