Inflation continues to soar throughout the U.S., with the Personal Consumption Expenditures (PCE) price index increasing to the highest level in almost 42 years while consumer spending cools, the Bureau of Economic Analysis (BEA) reported Thursday.
The PCE, one of the Federal Reserves’ key inflation indicators when it aims for a 2% annual inflation rate, surged 5.7% in November on a year-over-year basis, a 0.6% jump from October, the BEA reported. November’s figure is the highest since 1982.
The core PCE price index, which strips out food and gas prices, surged 4.7% on a year-over-year basis, the largest jump since 1983. Energy prices surged 34% from one year ago, and food costs jumped 5.6%.
“We suspect that the November and December headline figures will mark the top given a modest energy price pull-back into the turn of the year,” Mike Englund, chief economist at Action Economics, said according to CNN Business.