Inflation in the United States, according to preliminary data, will grow to 6.8 percent, on December 10 official statistics will be published for November. This can be a record high in 40 years, since the 1980s, when Ronald Reagan was Ronald, writes Bloomberg.
High prices played a business in the USA, which demonstrates the highest profitability since the 1950s. However, the sharp rise in prices scared the Americans, writes the publication.
A year ago, economists predicted inflation at a level of two percent for 2021. At first, the pandemic led to lower prices and everyone expected recovery. The first hint that inflation is about to accelerate, appeared in February. Lack of materials and working began to threaten supply chains.
Americans had money, they began to buy more products. “In essence, this inflationary impulse caused the consumer, simply acquiring more products than the world economy can produce,” said the main financial economist Jefferies Anet Markovsk. Companies began to raise prices.
In November, every fourth respondent of the survey of Michigan University said that inflation reduced their standard of living in half compared to the level of six months ago.
Earlier, the International Monetary Fund (IMF) called on US authorities and the Federal Reserve System (Fed) to hurry with the tightening of monetary policy and the adoption of measures in the fight against price increases.