Market participants were stunned by the government's published inflation rate for October, which was much higher than economists surveyed by the Wall Street Journal. However, the same market participants have noticed a sharp increase in prices over the past year, especially energy and food costs.

The inflation rate rose by 0.9%, significantly exceeding economists' forecast by 0.6%. What's even more alarming is that the sharp rise in inflation last month was 6.2% over last year. For the first time since November 1990, Americans have seen an inflation spiral out of control.

The Fed and the current administration still adhere to the line that the recent surge in inflation is temporary and will decrease over time. At the same time, the US regulator acknowledged that the current inflation rate is much higher than expected and that it will persist much longer than originally predicted.

They highlighted the fact that the vast majority of inflationary pressures are caused by labor shortages and supply chain bottlenecks. The Federal Reserve System and the current administration are also categorical about the fact that inflationary pressure will normalize by mid-2022.

However, many analysts believe that the recent increase in inflationary pressures will last much longer than the Fed predicts. Ask any consumer who has witnessed a sharp rise in the prices of goods and materials, and he will answer – the new transition period in relation to inflation is persistent.

It is most likely that by the end of 2021, gold will be trading above $ 1,835. Researchers currently predict that gold prices will rise to the level of $ 1,900 per ounce by the first quarter of 2022.

The studies were modified to account for 6.2% inflation. It now seems plausible that gold could easily end up at $1,900 an ounce before the end of 2021.

Electricity and food costs were the biggest contributor to the recent CPI inflation rate of 6.2%.

Based on the CPI inflation index, it is likely realistic that recent inflationary pressures will persist at these record levels for most of 2022, so the analyst studies presented in this article are realistic.