<Anchor> The
U.S. inflation index has risen to the highest level in 31 years. On the other hand, unemployment claims are at their lowest in 52 years, a trend that is putting pressure on interest rates.
Correspondent Kim Soo-hyung from Washington.
<Reporter> The
U.S. Department of Commerce announced that the personal consumption expenditure price index, an indicator of inflation, rose 0.6% from the previous month and 5% from the same month last year, respectively.
The 5% increase is the biggest increase since November 1990, 31 years ago.
The Personal Consumption Expenditure Price Index is the most important inflation indicator that the US central bank, the Federal Reserve, uses when determining interest rates.
As we approach the end of the year, which begins with Thanksgiving, the consumption of Americans who were suppressed by the coronavirus is reviving, and it is analyzed that prices have skyrocketed as supply chain disruptions around the world are added.
[Cullen/American Retail Association: (Consumption growth) is not only a historical trend, but is also caused by concerns that supply chain issues may be out of stock.]
Last week, Americans claimed unemployment benefits at 190,000, a 52-year low. 9,000 were counted.
Even just before the corona crisis, the number of claims for unemployment benefits in the United States exceeded 200,000, but the number of applications has decreased.
As the Fed emphasized prudent monetary policy to achieve employment recovery despite inflation, this trend is likely to put pressure on monetary authorities to raise interest rates.