https://www.wsj.com/articles/building-back-bitter-11639171577?mod=opinion_lead_pos11
Consumers and workers are taking a beating as Washington fails to maintain the value of our currency.
The Journal’s Gwynn Guilford reports:
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.
Federal Reserve Chairman Jerome Powell, who seems to have abandoned the term “transitory” to describe this monetary destruction, has nevertheless succeeded in forging a Wall Street-Washington consensus that inflation will soon be heading smartly southward. Many institutional economists up and down the Acela corridor have very reasonable arguments for their case that inflation will be much lower a year from now than it is today. Let’s all hope they are right.