The Consumer Price Index increased 0.9% in October, bringing the key inflation indicator’s year-over-year increase to 6.2% as supply shortages continue and demand grows, the U.S. Bureau of Labor Statistics announced Wednesday.
The year-over-year inflation figure is an increase from September’s 5.3% level, marking the highest level in 30 years, according to the Bureau of Labor Statistics (BLS) report. Economists surveyed by The Wall Street Journal projected the CPI would increase to just 5.9% in October.
The core price index, which excludes volatile categories like food and energy, jumped 0.6% in October, an increase from September’s 0.2% figure, according to the BLS.
“I do think we’re moving into a new phase where inflation is broader and where things are going to get a little more intense,” Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives, told the WSJ. “Part of that reflects that [supply-chain] bottlenecks are not resolved going into the holiday season, when a lot of purchases get made, and that the economy is doing really well, so you have strong demand.”
Food prices increased 0.9%, the same increase experienced in September, while the energy index jumped 4.8%.
The Federal Reserve announced on Nov. 3 that it would begin scaling back its monthly bond purchases by $15 billion starting in November to combat growing inflation. The Fed did not say it would raise interest rates from around the current near-zero level.
Meanwhile, some have said that continued massive spending by Democrats in Congress on President Biden’s economic priorities is only going to make the situation much worse.
“By all accounts, the threat posed by record inflation to the American people is not ‘transitory’ and is instead getting worse. From the grocery store to the gas pump, Americans know the inflation tax is real and DC can no longer ignore the economic pain Americans feel every day,” Sen. Joe Manchin, a moderate Democrat from West Virginia who has been opposed to Biden’s spending plans, tweeted following the most recent inflation news.
By all accounts, the threat posed by record inflation to the American people is not “transitory” and is instead getting worse. From the grocery store to the gas pump, Americans know the inflation tax is real and DC can no longer ignore the economic pain Americans feel every day.
— Senator Joe Manchin (@Sen_JoeManchin) November 10, 2021
And in October, a survey found that most Americans now blame Biden for the worsening inflation.
A Politico/Morning Consult poll released Tuesday shows that around 40% of respondents said that the Biden administration’s policies were “very responsible” for higher inflation, while 22% said that they were “somewhat responsible.” The poll results come as inflation levels hit record highs and economists predict that inflation, along with supply chain shortages, could persist into 2022.
In addition to those who attributed higher inflation to Biden’s policies, 48% said that Americans returning to pre-pandemic behaviors was also a cause. Despite the seeming return to some type of normalcy, 47% said they thought the economy would get worse over the next year, compared to 33% who said it would get better.
Biden’s overall approval rating stood at 45%, lower than the 52% who said they disapproved but higher than several other recent polls which put his approval in the low-40s or high-30s.
The Daily Caller News Foundation contributed to this report.