The increase in the unadjusted Consumer Price Index 12 month for November across all items was 6.8%, the highest since June 1982. The index for all items less food and energy rose 4.9 percent over the last 12 months. Energy rose by 33.3%, the highest of all component indexes. Fuel oil increased the most with 59.3%, all types of gasoline by 58.1%. The food index rose by 6.1% of which the food at home sub-index rose by 6.4%, more than food away from home which increased by 5.8%. These changes are the largest 12-month increases in at least 13 years in the respective series.
On a seasonally adjusted basis, the CPI increased by 0.8% after rising 0.9% in October. The indexes for gasoline, shelter, food, used cars and trucks, and new vehicles were among the larger contributors. The energy index rose 3.5 percent in November, as the gasoline index increased 6.1 percent and the other major energy component indexes also rose. The food index increased 0.7%, as the index for food at home rose 0.8% and away from home by 0.6%.
Earlier in the pandemic issues with goods were scarcity because of operations being disrupted to contain the virus. However, other issues have added up and the disruptions to the supply chain have worsened. At this point, the Federal Reserve Bank may begin to take monetary policy measures to control increasing inflation. An option is rising interest rates which would provoke debt of all kinds, from mortgages to car and business loans. This would cool off demand and put a hold on price gains.