For the first time in 39 years, inflation in the US exceeded 6.8%

 

 US consumer prices rose 6.8 percent in the year to November, according to a report released Wednesday by the Bureau of Labor Statistics, the fastest inflation rate in 39 years, according to the Washington Examiner.

The long-awaited figures from the consumer price index exceeded expectations and are likely to contribute to the damage to economic confidence, as well as to the approval of President Joe Biden.

The high inflation rates announced on Friday were largely driven by rising energy prices, which rose by more than 30% year-on-year, although all sectors of the economy saw prices rise.

 "Inflation is outpacing the increase in household income and is heavily weighing on consumer confidence, which is at its lowest level in a decade. It's only a matter of time before this has a significant impact on consumer spending, "said Greg McBride, chief financial analyst at Bankrate.

For months, the Federal Reserve has argued that higher inflation will be temporary, but now it seems that the increase in prices is too great. Fed Chairman Jerome Powell recently testified before Congress that he believes it is time to withdraw the word "transitional" when describing inflation.

 Powell also said that in light of higher prices, the central bank may decide to end its bond-buying program earlier, which would mean that interest rates could rise earlier than expected.

"At the moment, the economy is very strong and inflationary pressures are high," Powell said. "Therefore, I think it is appropriate to consider ending the reduction in our asset purchases, which we actually announced at our meeting in November, perhaps a few months earlier."

 Senator Pat Tuumi, the top Republican on the banking committee, criticized the Biden administration for its federal spending after new inflation figures were released Friday morning.

"Today's mind-boggling report on inflation should worry every American, but especially politicians," he said. "American working families are suffering as a result of the reckless borrowing and spending of the Biden administration and anti-energy policy. If the message wasn't clear enough before, it's crystal clear now. "