U.S. Inflation's Persistent Rise Hits Fastest Pace in 39 Years BY .GWYNN GUILFORD 15% Price increases were broad-based, though some categories U.S. inflation reached a such as household energy and alcohol nearly four-decade high in No- vember, as strong consumer 10 showed signs of easing. demand collided with pan- demic-related supply con- 39-year high 6.8%% straints. we... Consumer-price index, 12-month Change ......assessment::!: The Labor Department said 5 Excluding food and energy the consumer-price index- which measures what consum- ers pay for goods and ser- vices-rose 6.8% in November from the same month a year ago. That was the fastest pace RECESSIONS since 1982 and the sixth -5 straight month in which infla- 1980 90 2000 20 tion topped 5%. The so-called core price in- dex, which excludes the often- Consumer-price index for select categories, 12-month change volatile categories of food and energy, climbed 4.9% in No- vember from a year earlier. Household energy New vehicles Groceries That was a sharper increase Nov. 12.2%% 11.1% than October's 4.6% rise, and 10% 10% 10% the highest rate since 1991. The increase in prices for new vehicles, which came in at 11.1% in November, was the 5 largest on record, as were Overall CPI those for men's apparel and 6.8% living room, kitchen and din- ing room furniture. A 79% surge in fast-food restaurant Jan. Nov. Jan. Nov. Jan. Nov. prices last month marked the sharpest on record too. The steady rise in restau- Restaurants Furniture Apparel rant prices during the past Fast-food 7.9% 6.59 few months is a sign of pass- through from wages into 5 5% higher prices, economists say. All 5.8% 5.0% That dynamic is increasingly showing up in other indus- tries. Wages tracked by the At- U lanta Fed climbed 4.3% in No- Jan. Nov. Jan. Nov. Jan Nov. vember, up from 4.1% in October and the highest since 2007. Rent Medical care Alcohol Some energy prices showed signs of easing-in part be- 5% 5% 3.8% Please turn to page A4 1.9%% 1.7% Fed under pressure to pare 0 back stimulus.. . A4 Jan. Nov. Jan. Heard on the Street: Nov. Jan. Nov. Inflation's warm-up act.... B16 Source: Labor Department via the Federal Reserve Bank of St. LouisInflation On a monthly basis, the CPI dicted the previous quarter. "I price pressure such as rent increased a seasonally adjusted think it's going to continue," and medical care. 0.8% in November from the said Costco Chief Financial Of- Aichi Amemiya, senior U.S. Highest in prior month, about the same as ficer Richard Galanti on a call economist at Nomura Securi- October's 0.9% increase. to discuss earnings. "Hopefully, ties, said a continuing shift in The latest strong inflation we're getting towards the top consumer spending from 39 Years report strengthens the case and it'll start flattening out goods to services should also for Federal Reserve officials to and subsiding, but we'll see." help calm inflation. Signs of commit to hastening the wind- Hormel Foods Corp., maker improving transportation down of their stimulus efforts. of Spam and Skippy peanut costs and auto production hint Continued from Page One paving the way to raise inter- butter, said Thursday that it that inflationary pressure cause of fear in the financial est rates in the spring to curb raised prices on many of its could begin easing early next markets that the Omicron inflation. different pantry staples, citing year, though it is likely to re- variant of Covid-19 could slow "I think the Fed already got JOE RAEDLE/GETTY IMAGES sharply higher costs. main high in December, Mr. growth. But gasoline rose at a ahead of today's data by pre- "In 2022, we anticipate Amemiya said 6.1% monthly rate for the sec- announcing that they will ac- pork, beef, turkey and feed Covid-19 continues to be a ond straight month. celerate the taper next week," prices to remain above histori- wild-card factor. Past virus The November prices trend said Aneta Markowska, chief Strong demand for appliances and other goods has driven much of cal levels," said chief financial surges have put downward came before the emergence of financial economist at Jeffer- the inflation surge. A customer looks at refrigerators in Miami. officer James Sheehan on a pressure on prices for travel, the Omicron variant, which ies LLC. call with analysts. recreation and other services poses a new threat from a Stocks and oil prices gained tion and the overall economy, for Sunday lunch. Sixty percent of small-busi- that involve in-person interac- pandemic that is well into its and government bond yields pushing companies to raise "It has happened like a ness owners said they had in- tion. However, a resurgence of second year. But the sharp fell after the inflation figures prices to offset higher labor storm, and it just keeps com- creased prices in the previous cases ultimately could push in- price increases are the result reinforced expectations that costs. Companies are setting ing," she said. "I don't think 90 days, according to a No- flation higher by increasing of a booming economy that the economy should slow aside an average 3.9% of total we can keep giving more peo- vember survey of more than consumer demand for goods has developed imbalances in gradually next year as the Fed payroll for wage increases ple higher wages." 560 small businesses for The and triggering shutdowns of supply and demand as the U.S. tightens monetary policy. next year, the most since Ms. Tip said she is now re- Wall Street Journal by Vistage factories and ports, Mr. continues to recover from the Unlike in past recoveries, 2008, according to a survey by searching technological up- Worldwide Inc., a business- Amemiya said. pandemic. strong demand for goods such the Conference Board, a pri- grades that might require less coaching and peer-advisory Persistently elevated infla- "We have tremendous as autos, furniture and appli- vate research group labor. She is reluctant to in- firm. Eighty percent of the tion is hitting consumer bud- spending by consumers. A lot of ances has driven much of the Tip Hongchindaget said crease prices after having companies surveyed reported gets. people are getting hired. De- inflation surge. Prices for ser- that while demand at her done so earlier this year, espe- increased labor costs, while "Inflation has changed how mand is huge," said Allen Sinai, vices-such as for travel and Charlotte, N.C., restaurant is cially since the area's other 72% said their suppliers had I drive, shop and eat," said chief global economist and recreation-have generally booming, higher costs and Asian restaurants haven't raised prices. Dallas resident Greg Chu, who strategist at Decision Econom- climbed much less with softer scarce labor are squeezing her raised prices much. "If we Economists generally see works as an accountant. "I can ics Inc. He added that higher- demand. The holiday season is business. A surge in chicken raise the price again this time, inflationary pressure from afford to pay these price in- than-expected inflation implies likely exacerbating these dy- prices has wiped out what I'm pretty sure it's going to supply constraints easing in creases, but at the cost of re- a needed pullback in fiscal and namics, Ms. Markowska said, used to be a reliable source of impact" sales, she said. 2022 as sidelined workers re- ducing my other expenses or monetary stimulus. "Even after adding the supply and demand profit for her restaurant, Rice On Thursday, Costco Whole- turn, consumer demand for savings, which I am not willing doing that, the economy should imbalance will continue to & Spice Thai Street Food. And sale Corp. said its prices likely goods cools and production to do." still be in super shape produc- widen. though sales are strong, the grew between 4.5% to 5% in ramps up. However, they also -Sarah Nassauer ing growth rates and earnings A shortage of available dearth of workers has the most recent quarter, a bit expect those to be replaced by and Patrick Thomas not seen in decades." workers is also affecting infla- prompted her to start closing higher than the company pre- more persistent sources of contributed to this article