US economy experiencing fast inflation growth in November
Illustrative photo: The US economy is experiencing fast inflation growth in November (Getty Images)
A moderate increase in 2024 inflation rates is raising concerns among consumers and businesses, according to CNBC.
The US Bureau of Labor Statistics stated inflation is increasing steadily, rising at 3.3% annually, which is approximately 0.3% per month. In November, the annual inflation rate was at 2.7%, which is 0.1% higher than the October figures.
Although inflation in the USA has dropped significantly since 2022, it is still above the Federal Reserve System's intent. Some business owners claim they are frustrated with inflation growth and hope rate cuts can stabilize the situation.
Consumer price index (Infographics: cnbc.com)
Meanwhile, Federal Reserve representatives are considering their next steps for an upcoming report meeting. The latest economic data predicts the Fed will decrease its key short-term interest rate by 0.25% at the end of the meeting on December 18. However, they are also expected to pause any further cuts in January to evaluate the effects of previous rate reductions on the economy.
In November, much of the CPI increase came from accommodation costs, which rose 0.3% monthly and 4.7% annually. This amounts to 40% of the total growth. Food prices grew 0.4% monthly and 2.4% annually. Vehicle prices also increased, with used vehicles up 2% monthly and new vehicles up 0.6%.
Dependent on inflation, employees' average hourly earnings grew by 1.3% in 2024.
