Washington, D.C.— Inflation posted its largest jump in nearly 40 years in November, up 6.8% year over year. The Consumer Price Index (CPI) released by the Bureau of Labor Statistics showed the CPI rose 0.8% in November compared with October. This marks the largest 12-month increase since June 1982, according to the National Association of Home Builders (NAHB).
Supply chain constraints and strong consumer demand related to the pandemic and the reopening of the economy have contributed to recent price increases in some sectors. In some areas, costs have increased at an even more rapid clip. For example, the average price of major appliances is up almost 27% since January 2020.
NAHB is still forecasting inflation to ease somewhat next year, although the rate will remain well above the Federal Reserve’s 2% target.