US Inflation Soars to 39-Year High

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by Martin Armstrong

Powell’s decision to retire the word “transitory” when discussing inflation was too little, too late. The Bureau of Economic Analysis (BEA) reported that US inflation soared 5.7% in November on an annual basis, marking a 0.5% rise from October. The gauge has not reached this level since 1982. Eliminating food and energy from the equation, prices rose 4.7%, which still marks the most significant increase since September 1983.

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The BEA noted that consumers are spending more on essentials. The Biden Administration touts rising wages without understanding that this is contributing to the wage-price spiral. Employers are paying their employees more to keep up with the cost of living. Costs go up for businesses and therefore go up for the consumer.

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Expect the Fed to finally take a hawkish approach in 2022.

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