US Inflation Surges 6.8%... Biden's Economic Approval Rating at 37% (Update)

Core CPI also surges to 4.9%
Possibility of Fed stance change amid rising inflation

[Asia Economy New York=Correspondent Baek Jong-min] U.S. inflation in November soared to 6.8%, marking the highest level since 1982.

[Image source=AP Yonhap News]

The U.S. Department of Labor announced on the 10th (local time) that the Consumer Price Index (CPI) for November rose 6.8% compared to the same period last year. This exceeded the previous month's increase of 6.2%, approaching a record high near 7%. The month-over-month increase was 0.8%, slightly lower than October's 0.9% rise.

The core CPI, which excludes fuel and food, also rose by 4.9%, nearing 5%. The previous month's increase was 4.6%. Oil prices surged 33% over the year, leading the inflation rise.

CNBC reported that the November CPI surged to the highest level since 1982. The core CPI showed the highest increase since 1991.

Trend of US Consumer Price Index Inflation Rate

The sharp rise in CPI is a factor that stimulates the Federal Reserve's (Fed) tapering of asset purchases and the possibility of an early interest rate hike.

One day earlier, U.S. President Joe Biden and Brian Deese, Chair of the National Economic Council, argued that the November CPI is a lagging indicator that does not reflect the recent sharp drop in oil and natural gas prices, but the view of American voters remains cold.

On the same day, NBC reported that President Biden's approval rating for economic policy stood at 37%, significantly lower than the 56% disapproval rating.

Although the CPI rose as expected, the market did not show significant volatility on the day.

Meanwhile, as of 8:50 a.m., futures for the Dow Jones Industrial Average were up 0.5%, the S&P 500 index rose 0.75%, and the Nasdaq index increased 0.89% in the New York stock market. The gains expanded after the CPI announcement.

The U.S. 10-year Treasury yield entered the 1.5% range but showed little difference compared to before the CPI release. The 2-year Treasury yield, which is sensitive to Fed monetary policy, rose to the 0.7% range but was still lower than before the CPI announcement.

This content was produced with the assistance of AI translation services.