2021’s Inflation Reaches the Highest in 40 Years as U.S. Prices Rise 7% Year-On-Year in December

Translated by: MOS Translation Team – tang777

The CCP virus has caused the U.S. to hit its highest level of inflation in 40 years.

According to the Washington Post, U.S. prices rose at the fastest pace in 40 years in December 2021, up to 7% from the same period last year. This inflation rate has far exceeded the long-term healthy target of 2 percent established by the Federal Reserve. The Fed is also slowly changing from its initial view that high inflation is only temporary to the view that it will continue for some time.

As the CCP virus outbreak enters its third year, supply chain systems and labor shortages in the U.S. and the world have faced unprecedented challenges, as the outbreak has led to intermittent shutdowns and production cuts in various industries and chaos in the shipping industry.

At the same time, the price of basic raw materials rose. The price of WTI U.S. crude oil futures recently broke through the $80 a barrel mark and hovered around $83 a barrel.

In the confrontation of the disorderly supply chain problem, the Federal Reserve did not take into consider but stimulated demand through cutting the reserve requirement ratio as well as QE, further expanding the imbalance between supply and demand, which led to a further increase in the inflation rate.

Not only the rapid rise in prices of major raw materials as well as food, but also the North American streaming company Netflix recently announced a subscription price increase of about 10%. We can expect more and more oligarchs companies in the technology industry to boost their earnings and share prices by raising prices. On the other hand, the average consumer will face a decline in real purchasing power from rapidly rising prices in all aspects of life, as their wages are not increasing at the same rate as prices.

Proofread by: Stay

Edited by: Stay

Posted by: Stay

Resource:https://gnews.org/zh-hans/1867795/