Inflation Metric Shows Highest Price Surge In Over 30 Years

The cost of goods continues to rise and is showing no signs of slowing down. The Consumer Price Index for October rose by 6.2% year-over-year, which is the largest increase in 31 years, according to data released by the Bureau of Labor Statistics. When looking at the data compared to September, the price index rose by 0.9%.

"We're seeing early signs of an inflationary surge that's likely to persist, with companies responding to rising input costs with cost increases of their own, which in turn causes higher input costs for others," said Brad Armstrong, partner at Lovell Minnick Partners, according to Fox Business. "It's a cycle that repeats itself."

The biggest driver of the rising costs was energy prices, which rose by 4.8%. Food prices saw a 0.9% increase, while the cost of shelter rose by 0.5%. Used cars were more expensive, costing 2.5% more, while the average price of a new vehicle rose by 1.4%.

The rising costs are a combination of many factors, including an increase in demand, bottlenecks in the supply chain, and inclement weather.

"Various agricultural commodities — wheat, sugar, beef, and corn — are up by double-digit percentages this year, and due to inclement weather and import backlogs, coffee prices are up over 50 percent year-to-date," Greg McBride, chief financial analyst for Bankrate, said, according to NBC News. "While energy prices are up due to a surge in demand, food inflation is a consequence of supply chain constraints and unfavorable weather impacting harvests."