Already percolating over the summer, the nation’s inflation rate, according to the most recent Bureau of Labor Statistics, reached a new and unanticipated high of 6.2% in October.
The latest figures mark an increase from September, when the rate stood at 5.4%, and a significant jump from this spring’s 2.6%.
According to the site Trading Economics, the inflation rate is now at its highest level since December of 1990 and is well above the Federal Reserve Board’s desired annual rate of 2%.
“Prices rose across the board,” notes the New York Times of the latest figures, “at deli counters and restaurants and car dealerships.”
“It’s looking increasingly likely that consumers will be feeling the effects of inflation for months to come as economies re-open in the wake of the Covid-19 pandemic,” reports Bloomberg.com.
The new figures show a massive 30% increase in energy costs, with gasoline up by just under 50%. Smaller increases were recorded in housing costs with a 3.5% increase, and new vehicles, seeing a 9.8% rise.
Transportation services were up by 4.5%, while apparel took a 4.3% hit.
Food prices, meanwhile, are being driven by a combination of labor shortages, product scarcity, and ongoing tariffs, say analysts.
The new numbers are proving particularly challenging for the nation’s construction industry, with a 7.3% gain in softwood lumber prices over September, and 4.8% increase in steel mill products.
“Inflation continues to endure, particularly in multiple commodity categories that directly impact the cost of delivering construction services in America,” said Anirban Basu, chief economist with the Associated Builders and Contractors.
Basu went on to note that the ABC’s most recent Construction Confidence Index now shows that the average contractor nationally “expects profits to decline over the next six months as the combination of high materials prices and an ongoing shortage of workers conspires to put pressure on margins.”
By Garry Boulard
