--- title: This Key Inflation Measure Just Hit Another High description: Inflation increases by 5.7%, hitting another decades-long high. Here's what it means for your wallet. authors: - name: Javier Simon url: https://money.com/author/javier-simon/ bio: Javier is a personal finance reporter covering retirement, investing, crypto and more. His work has appeared on leading financial websites including NerdWallet, Bankrate and SmartAsset. He’s also written for newspapers, magazines and video. at_money_since: 2021 articles: 39 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Housing - Investing - Loans - Personal Finance - Retirement - Shopping - Taxes - Technology former_staff: true published: '2021-12-23T20:03:18.000Z' modified: '2024-01-10T17:07:36.000Z' section: Economy and Politics tags: - inflation - News word_count: 237 canonical: https://money.com/inflation-december-fed/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![A shopping cart is elevated by a helium balloon up in the sky, symbolizing inflation.](https://img.money.com/2021/12/News-inflation-is-at-a-40-year-high-.jpg) Paid more for just about everything this year? Expect to dig even deeper into your pockets in 2022. Consumer prices increased by 5.7% year-over-year in November, according to the Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation measure. The current reading is far above the Fed's target of 2%. The Fed says it may raise interest rates in 2022 to reduce inflation before it significantly harms the economy. Inflation has been rising throughout the year, fueled by high consumer demand, [labor shortages](https://money.com/labor-shortage-holidays-prices-travel-2021/) and widespread supply chain disruptions. Americans have been worrying about rising prices this holiday season, as the prices of goods like [toys, turkeys, wine](https://money.com/holiday-shortages-toys-turkey-wine/?ref=/inflation-prices-2021/) and [Christmas trees](https://money.com/christmas-tree-prices-soaring-2021/) all went up. Even discount stores like [Dollar Tree](https://money.com/everything-at-dollar-tree-costs-more-than-a-dollar/) have increasing their prices. The [Federal Reserve](https://money.com/federal-reserve-explained/) indicated earlier this month that it may raise interest rates at least three times in 2022 to deal with rising inflation. Higher interest rates should encourage Americans to save more since returns on [savings accounts](https://money.com/best-savings-accounts/) will be higher. At the same time Americans would be discouraged from borrowing since loans would be more expensive. Ultimately higher borrowing costs and less spending, should help bring price rises under control. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/inflation-december-fed/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Economy and Politics", "item": "https://money.com/economy-and-politics/" }, { "@type": "ListItem", "position": 3, "name": "Inflation", "item": "https://money.com/inflation/" }, { "@type": "ListItem", "position": 4, "name": "This Key Inflation Measure Just Hit Another High" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/inflation-december-fed/#webpage", "url": "https://money.com/inflation-december-fed/", "name": "This Key Inflation Measure Just Hit Another High", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2021-12-23T20:03:18.000Z", "mainEntity": { "@id": "https://money.com/inflation-december-fed/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/inflation-december-fed/#breadcrumb" }, "dateModified": "2024-01-10T17:07:36.000Z" }, { "@type": "NewsArticle", "headline": "This Key Inflation Measure Just Hit Another High", "articleSection": "Economy and Politics", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2021/12/News-inflation-is-at-a-40-year-high-.jpg", "width": 2880, "height": 1920, "caption": "News- inflation is at a 40-year high" } ], "author": [ { "@type": "Person", "name": "Javier Simon", "url": "https://money.com/author/javier-simon/", "@id": "https://money.com/author/javier-simon/#author", "description": "Javier is a personal finance reporter covering retirement, investing, crypto and more. 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