The U.S. annualized rate of inflation was 7% in December, the highest figure since 1982. The energy-price component grew at a 30% annualized rate, used cars by nearly 40%, and meat by 15%. However, the official figure for house rent is 4% below independent statistics, which run between 15 and 20%. The impression is that official statistics do not reflect the real impact of inflation on the middle class.
In the Eurozone, Eurostat estimated December’s inflation at 5% a few days ago, a 0.4% increase over November on a monthly basis. This refuted previous ECB forecasts of a declining inflation for December. Inflation as measured on staple foods is much higher. For instance, wholesale prices of pasta are 38% higher in italy: one kg of quality pasta (durum wheat) stands at 1.40€, up from 1.10€ in September. At the end of January, it will be 1.52€.
