The annual inflation rate for the U.S. rose to 6.2 percent in October, the highest since November 1990. The increase was higher than the anticipated 5.8 percent with broad contribution from the energy, shelter and food categories. Gasoline increased by 49.6 percent over October 2020, food increased 5.3 percent with food-at-home up 5.4 percent, new vehicles 9.8 percent, used vehicles 26.4 percent, apparel 4.3 percent and transportation services 4.5 percent.
The unadjusted Consumer Price Index for urban consumers is based on the price of a market basket comprising food (14 percent), energy (9.3 percent), commodities (19.4 percent) and services (57 percent).
Federal Reserve Chairman, Jerome Powell and Treasury Secretary Janet Yellen maintain the current price pressure is temporary and in large measure due to COVID-related factors impacting supply chains. Many economists consider that “inflation is getting clearly worse and will do so before it gets better”.
Pressure is amounting for the Federal Reserve to tighten but a rise in interest rates is not anticipated until at least the beginning of the second quarter of 2022 with the possibly two increases during the year.
Along with consumers, the poultry meat industry is experiencing obvious inflation in inputs including transport, labor, energy and packing materials. Fortunately ingredient prices have moderated from September and are offsetting the rise in other costs.