US consumer prices rise at fastest annual pace in almost 40 yrs

Washington, Dec 11 (IANS) US consumer prices in November rose at the fastest annual pace in almost 40 years, increasing pressure on the Federal Reserve to tighten monetary policy, the Labour Department reported.The consumer price index (CPI) last month rose 0.8 per cent from the previous month and 6.8 per cent from a year earlier, the largest 12-month increase since the period ending June 1982, Xinhua news agency quoted the Department as saying on Friday.The so-called core CPI that excludes food and energy costs rose 4.9 per cent over the last 12 months, while the energy index rose 33.3 per cent over the last year and the food index increased 6.1 per cent, according to the Department.The Fed has pledged to keep the federal funds rate unchanged at the record-low level of near zero since the start of the pandemic. Meanwhile, the central bank began last month to reduce its monthly asset purchase program of $120 billion by $15 billion. At this pace, the Fed would end its asset purchases by June next year.But some Fed officials and economists have urged the central bank to accelerate the pace of tapering to give more leeway to raise rates sooner amid inflation pressures.
--IANS ksk/

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