Business cycle The rise in consumer prices picked up again in the United States: Inflation was last as fast as it was 31 years ago

Consumer prices higher prices rose sharply in October in the United States.

According to data released by the Ministry of Labor on Wednesday, the inflation rate was 6.2 per cent. In September it was 5.4 percent.

The last time inflation in the United States was 6.2 percent was in November 1990.

In October the rise in consumer prices was widespread, from energy to housing and food and vehicles. The price of petrol rose by 6.1 per cent.

Inflation was also accelerated by supply chain disruptions, which have led to higher demand than supply for many commodities. In addition, companies in the service sector are short of workers.

Core inflation, which is closely monitored by central banks, is 4.6 per cent in October. In September, it was 4.0 percent, so it also accelerated significantly.

The effect of energy and food on the change in price levels has been removed from core inflation.

Read more: Accelerating inflation could plunge the global economy and investors are scared

Last week, the US Federal Reserve decided to start in stages reduce its securities purchases, which it launched to curb the financial damage of the coronavirus pandemic.

The main reasons for the decline in purchases are the supportive economic recovery, rising inflation and improving employment. Purchases are reduced by $ 15 billion a month.

Following the escalation of the coronary virus pandemic, the central bank has bought $ 120 billion a month in federal bonds and mortgage-backed securities from the market to mitigate financial damage.

The central bank also reiterated its assessment that the significant acceleration in inflation is temporary. According to its price stability target, the average inflation rate over the long term should be 2%.

International Monetary Fund (IMF) estimates in mid-October in its global economic review, inflation in the United States will accelerate to 4.3 per cent this year but slow to 3.4 per cent next year.

Inflation has also accelerated in the euro area. According to preliminary data from the European Statistical Center, the inflation rate was 4.1 per cent in October. In September, it was 3.4 percent.

The President of the European Central Bank Christine Lagarde estimates two weeks agothat inflation in the euro area will start to slow down early next year.