The US Bureau of Labor Statistics released the November CPI data on Friday, and the report, as expected, indicated an even higher inflation rate.
Many economists were correct in their predictions that inflation relative to the consumer price index (CPI) would rise 0.7%. This increased the annual rate to 6.8% and is the worst data since the 1980s.
According to senior analyst Edward Moya, this report should fuel expectations of a rate hike in 2022.
Now that the latest inflation data has been published, the results will be a key component that the Federal Reserve will consider before releasing its adjusted monetary policy on Wednesday this week, when a revised dot chart will be released before Chairman Jerome Powell's press conference.
This period is one of the most serious recessions since the Second World War in the early 1980s, when inflation was even more pronounced than it is now, with double-digit being the norm in 1980. It ranged from 12.52% to 14.76% back then, and it took almost five years, from 1980 to 1984, to bring the rate down to an acceptable level - between 2% and 4%.
