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U.S. inflation rate rises to 13-year high of 5.4% | CBC News Loaded
Business


U.S. INFLATION RATE RISES TO 13-YEAR HIGH OF 5.4%

The U.S. inflation rate rose to a 13-year high in September as rising costs for
food and shelter pushed the rate up to 5.4 per cent.


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ENERGY COSTS HAVE SOARED BY 25 PER CENT IN PAST YEAR

CBC News · Posted: Oct 13, 2021 8:58 AM ET | Last Updated: October 13

U.S. energy prices have soared by almost one quarter in the past year. (Ken
Ruinard/The Associated Press)
1485
comments

The U.S. inflation rate rose to a 13-year high in September as rising costs for
food and shelter pushed the rate up to 5.4 per cent.

Higher prices for food and shelter made up half of the increase in the overall
rate, the U.S. Bureau of Labour Statistics said in a release. But the biggest
individual category increase was energy, the cost of which has risen by almost
25 per cent in the past year.



Economists were expecting the number to come in at around 5.3 per cent, which
would have been the highest rate since 2013. But the figure ended up being
higher than it's been since 2008, right before the financial crisis.

The COVID-19 pandemic that started in early 2020 caused demand for all sorts of
goods and services to plummet. But that demand is now returning so swiftly that
supply chains can't keep up, which is leading to huge price spikes in just about
everything.

 * Brace yourself — gas prices are hitting records as global energy crisis
   arrives in Canada

"Consumers are feeling the pinch from higher costs for many essentials, with the
pace of inflation outstripping wage growth since the spring," said Leslie
Preston, an economist with TD Bank.

Not everything is getting more expensive, however. While the price of used cars
and trucks has skyrocketed during the pandemic, both have now fallen for two
months in a row. Airline fares and apparel prices also fell during the month. 

"Many travel-related prices that were hot in the spring are trending down,"
Preston said.

And the price of medical care fell by 0.1 per cent during the month, while the
cost of medical care commodities is down by 1.6 per cent in the past 12 months.


 * CBC News Business
   'Carpocalypse' comes to Canada as rental car shortage worsens

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