U.S Y/Y CPI rises most since 1990

Pernicious bottlenecks and other supply-chain disruptions intensifying has allowed inflationary pressure to spread further throughout the economy, causing the US Consumer Price Index (CPI) to rise to 6.2%. This 6.2% rise from a year ago is the fastest annual pace since 1990 and is a dramatic increase from September's levels of 5.4%. While in some areas prices have moderated – like used cars and travel expenses – prices have been ramping up elsewhere. Rents and other shelter-related costs, which represent around one third of the CPI, have steadily risen in recent months, and services have become more expensive as employers battle with severe worker shortages. The data reinforces the view that inflation is more persistent than initially anticipated, and it will ask questions of the Fed, who still believe inflation is `transitory`. Short-dated US government bond yields rose upon news of the CPI jump, and inflation hedges such as gold and Bitcoin took positively to the news.