Inflation Set To Rise Even Further In November

(December 9th, 2021 - Veronika Bondarenko)

Economists predict that prices will rise by 6.8% when November data is released.

After reaching a 30-year high of 6.2% in October, inflation is set to rise even further when the data for November is released.

In advance of the data set to come out on Friday, a number of economists predict that U.S. prices will rise by 6.8% in November, a number unseen since the 1980s in large part spurred by rapid reopening and disruption to the supply chain from the pandemic.

"Essentially, the pandemic made it harder for the world to produce stuff and move it around," Reade Pickert and Matthew Boesler wrote for Bloomberg.

"The government shored up incomes in the crisis like never before, so households remained eager to spend. And a combination of lockdowns and Covid caution meant their purchasing power was focused on consumer goods instead of services."

Food items such as beef and bacon as well as household items like baby diapers are some of the products hardest-hit by rising prices — beef prices rose a whopping 20.1% in the last year.

Not limited to everyday household items, inflation is set to impact all aspects of the economy from energy to the materials needed to build a house.

But impact in some fields can take months to trickle down to the consumer, rising prices are also having a psychological effect as average buyers worry about their dollar not stretching as far to feed their families while investors consider what it could to do to a portfolio.

"People see inflation everywhere," David Schassler, Portfolio Manager of the Inflation Allocation ETF at VanEck, told TheStreet last week. "They see it everywhere and they're starting to react to it. They're starting to challenge this transitory argument because they see prices rising all around them."