- Attention hours from Mon to Fri 9:00 - 18:00 CST - US Toll Free
- 1 877 698 3905
- 800 247 2537
- start@americanindustriesgroup.com
U.S. Inflation Hit a 39-Year High in November 2021
U.S. inflation reached a nearly four-decade high in November, as strong consumer demand collided with pandemic-related supply constraints.
The Labor Department said the consumer-price index—which measures what consumers pay for goods and services—rose 6.8% in November from the same month a year ago. That was the fastest pace since 1982 and the sixth straight month in which inflation topped 5%.
The so-called core price index, which excludes the often-volatile categories of food and energy, climbed 4.9% in November from a year earlier. That was a sharper increase than October’s 4.6% rise, and the highest rate since 1991.
The increase in prices for new vehicles, which came in at 11.1% in November, was the largest on record, as were those for men’s apparel and living room, kitchen and dining room furniture. A 7.9% surge in fast-food restaurant prices last month marked the sharpest on record too.
The steady rise in restaurant prices during the past few months is a sign of pass-through from wages into higher prices, economists say. That dynamic is increasingly showing up in other industries. Wages tracked by the Atlanta Fed climbed 4.3% in November, up from 4.1% in October and the highest since 2007.
The November prices trend came before the emergence of the Omicron variant, which poses a new threat from a pandemic that is well into its second year. But the sharp price increases are the result of a booming economy that has developed imbalances in supply and demand as the U.S. continues to recover from the pandemic.
Tip Hongchindaget said that while demand at her Charlotte, N.C., restaurant is booming, higher costs and scarce labor are squeezing her business. A surge in chicken prices has wiped out what used to be a reliable source of profit for her restaurant, Rice & Spice Thai Street Food. And though sales are strong, the dearth of workers has prompted her to start closing for Sunday lunch.
“It has happened like a storm, and it just keeps coming,” she said. “I don’t think we can keep giving more people higher wages.”
Ms. Tip said she is now researching technological upgrades that might require less labor. She is reluctant to increase prices after having done so earlier this year, especially since the area’s other Asian restaurants haven’t raised prices much. “If we raise the price again this time, I’m pretty sure it’s going to impact” sales, she said.
Source: The Wall Street Journal
The Labor Department said the consumer-price index—which measures what consumers pay for goods and services—rose 6.8% in November from the same month a year ago. That was the fastest pace since 1982 and the sixth straight month in which inflation topped 5%.
The so-called core price index, which excludes the often-volatile categories of food and energy, climbed 4.9% in November from a year earlier. That was a sharper increase than October’s 4.6% rise, and the highest rate since 1991.
The increase in prices for new vehicles, which came in at 11.1% in November, was the largest on record, as were those for men’s apparel and living room, kitchen and dining room furniture. A 7.9% surge in fast-food restaurant prices last month marked the sharpest on record too.
The steady rise in restaurant prices during the past few months is a sign of pass-through from wages into higher prices, economists say. That dynamic is increasingly showing up in other industries. Wages tracked by the Atlanta Fed climbed 4.3% in November, up from 4.1% in October and the highest since 2007.
The November prices trend came before the emergence of the Omicron variant, which poses a new threat from a pandemic that is well into its second year. But the sharp price increases are the result of a booming economy that has developed imbalances in supply and demand as the U.S. continues to recover from the pandemic.
Tip Hongchindaget said that while demand at her Charlotte, N.C., restaurant is booming, higher costs and scarce labor are squeezing her business. A surge in chicken prices has wiped out what used to be a reliable source of profit for her restaurant, Rice & Spice Thai Street Food. And though sales are strong, the dearth of workers has prompted her to start closing for Sunday lunch.
“It has happened like a storm, and it just keeps coming,” she said. “I don’t think we can keep giving more people higher wages.”
Ms. Tip said she is now researching technological upgrades that might require less labor. She is reluctant to increase prices after having done so earlier this year, especially since the area’s other Asian restaurants haven’t raised prices much. “If we raise the price again this time, I’m pretty sure it’s going to impact” sales, she said.
Source: The Wall Street Journal
If you would like to find out more about this topic or are interested in receiving a complimentary business case analysis for your operation in Mexico, please fill out this form or contact us at:
US toll-free: +1 (877) 698 3905
CAN toll-free: +1 (844) 422 4922
CN Toll-free: +1 (400) 076 8899
start@americanindustriesgroup.com
US toll-free: +1 (877) 698 3905
CAN toll-free: +1 (844) 422 4922
CN Toll-free: +1 (400) 076 8899
start@americanindustriesgroup.com
Please note that we do not accept job applications here. If you are interested in applying for a position, please visit the following link: https://www.americanindustriesgroup.com/jobs/
Related posts
March 20, 2023
TESLA, the global leading manufacturer of electric vehicles, will be investing over $5 billion USD and creating at least 5,000 new jobs, in what will be […]
February 28, 2023
GKN Aerospace laid the first stone for the expansion of its plant located in the state of Chihuahua, in which it will invest 10.5 million dollars […]
February 27, 2023
MEXICO – Nearshoring and foreign investment could bring a decade of economic growth to Mexico, according to Sociedad Financiera De Objeto Múltiple (Sofom) Serfimex Capital. In […]
January 31, 2023
Exports of heavy-duty cargo trucks to the U.S. helped propel truck makers in Mexico to their best year ever, as production increased 20.6% year over year […]
January 27, 2023
The production facility will create up to 1,300 additional jobs and represent a capital expenditure of approximately $165m. BRP has announced its plans to commence the […]
December 15, 2022
Production of the new BMW M2 began today at the San Luis Potosi plant in Mexico. The new BMW factory will exclusive manufacture the G87 M2 […]
