NEW YORK – The US witnessed historic high inflation in November as prices of goods and services surged due to pandemic-related supply constraints.
The US Labour Department said that the consumer price index (CPO) – which measures what cost is paid by consumers for goods – rose 0.8% after it surged 0.9% in October.
In the 12 months through November, the CPI rose 6.8%, registering the largest annual gain since June 1982.
S&P e-mini futures extended gains and were last up 0.75%, pointing to a strong open on Wall Street, Reuters reported
Wall Street’s main indexes witnessed bullish trend after consumer prices registered surged, taking some pressure off investors concerned amid tough monetary policy.
The Dow Jones Industrial Average increased by 75.86 points, or 0.21%, at the open to 35,830.55.
While the Nasdaq Composite gained 112.22 points, or 0.72%, to 15,629.59 at the opening bell.
Ameriprise Financial Services Inc Chief Economist Russell Price told Reuters, “This report solidifies the view of what the Fed’s path will be. This further alleviates any doubt as to an acceleration of their tapering to come out of next week’s meeting. What will be key to watch from the Fed is their dot plot to see committee members’ views of when the path of hikes will come over the next two years.
“Today’s report probably doesn’t change what the market’s perspectives on when rate hikes begin, which consensus shows is some time in the second quarter.
“The inflation trends continue, but the trends are a little bit worrisome right now.”