US consumer prices rose at their fastest pace in nearly 40 years in November amid surging inflation.
Consumer prices increased 5.7%, up from 5.1% in October, according to figures released on Thursday by the Commerce Department.
This marked the fastest pace since 1982. The figures were in line with analysts’ expectations after data from the Labor Department earlier this month showed that consumer prices rose in November at their fastest pace in nearly 40 years.
Consumer spending rose 0.6% in November, coming in below October’s 1.4% jump as people started their Christmas shopping earlier than usual this year. Meanwhile, personal incomes were up 0.4% compared with a 0.5% rise in October.
Andrew Hunter, senior US economist at Capital Economics, said: “Despite the weaker consumption data, the further jump in both headline and core PCE inflation, to 5.7% and 4.7% respectively, supports the Fed’s hawkish pivot.
“While recent falls in energy prices suggest that the headline rate is peaking, core inflation looks to have even further to rise over the next few months.”