A breakdown of the latest U.S. data indicates that inflation is confined to certain sectors and will not pose a threat to the recovery, according to Carl Weinberg, chief economist at High Frequency Economics.
U.S. CPI inflation came in at an annual 6.2% in October, its steepest climb for more than 30 years.
Energy, shelter and vehicle costs led the gains, which more than wiped out the wage increases that workers received for the month.
The persistent high inflation and continuation of pressures such as supply chain bottlenecks have led many economists to question the Federal Reserve’s long-held view that the spike will be “transitory.”
However, stronger-than-expected October retail sales and…