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Last Updated, Dec 10, 2021, 11:21 PM
Inflation, Strikes and Rising Prices: Latest News and Updates
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Credit…Philip Cheung for The New York Times

Inflation’s surge in the United States has been driven in part by a substantial increase in energy and prices over the last year, although there has been some moderation in recent weeks.

According to the Consumer Price Index, the 12-month change in energy prices as of November was 33.3 percent, nearly five times the overall inflation rate.

The cost for gasoline moved higher by 6.1 percent last month — a burden for households, particularly as the holiday travel season begins — and by 58.1 percent in the last year.

Prices for fuel oil — which is used for industrial and home heating — rose 3.5 percent last month, though that rate was far tamer than October’s 12.3 percent increase. If that easing continues, it may provide some measure of relief for households bracing for crippling household winter heating bills, but fuel oil is still up 59.3 percent on a yearly basis.

In better news, electricity prices were up a more modest 0.3 percent last month — a break from October’s 1.8 percent increase, but still 6.5 percent higherthan a year earlier.

Unlike in some other commodity sectors, increased energy prices in the market are quickly passed through to consumers, who have become accustomed to cheaper energy prices in recent years and now find themselves rankled by the sudden pressure put on their budgets.

“Households are facing higher prices at every turn,” said Greg McBride, the chief financial analyst at Bankrate, a personal finance company. The recent jumps in energy, food and shelter, he said, “are putting a major squeeze on household budgets.” Those three expenses account for more than half of the weighting in the Consumer Price Index. Energy alone accounts for 7.5 percent.

Because energy and food prices are notoriously volatile, the government reports separate inflation figures, including and excluding those categories. Including all categories, the one-month rise in November was 6.8 percent; without food and energy, it was 4.9 percent.

The surge in consumer prices is likely to intensify debates in Washington over the continuation of uncomfortably high inflation numbers — especially for core expenses such as energy that households can’t go without — and how policymakers can address them.

Republicans in Congress and lobbying groups for the oil and gas industry have filleted the Biden White House for higher energy prices; however, nonpartisan industry researchers have noted the overall weak relationship between a given administration’s level of support for renewable fuels and the arc of fossil fuel prices.

The George W. Bush administration, for instance, was noted for its connections to the oil and gas industry, yet during Mr. Bush’s second term, energy prices were often higher than today. And the Obama administration — whose clean-energy initiatives were prominent — benefited from a private-sector fracking boom on its watch, which increased supply and made gas and home heating relatively cheap for years.

Good news about energy prices has been uncommon for consumers lately. But recent moves in the market have indicated that the weather may cut them at least a temporary break. Natural gas, used to heat almost half of U.S. households, almost doubled in price earlier this fall, but sank by more than 10 percent at one point this week after the release of government weather forecasts projecting a warmer-than-expected winter.

Several states have had some of their warmest December days on record. And according to the National Oceanic and Atmospheric Administration’s Climate Prediction Center, above-average temperatures throughout the South and most of the East could predominate for most of this winter.

“If it’s a warmer winter, then our estimates about consumption will be down, and if consumption is down, that’ll reduce the price of the fuel,” said Mark Wolfe, the executive director of the National Energy Assistance Directors’ Association, a group of state officials that provide assistance to households in need. “It’s a good sign.”

Much like retail businesses, energy producers have had to wrestle with imbalances in the economy caused by the pandemic shock and a halting reopening of activity.

An analysis this month from the Federal Reserve Bank of Dallas noted that oil-field activity in the region had risen steadily over the last month and a half, but that “supply-chain delays worsened, with significantly larger backlogs, escalating costs, and material and equipment lead times as long as 10 months for some types of machinery.”

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