U.S. CPI blows out to a four decade high at 9.2%. Inflation rate is now reaching double digit numbers, while Central Banks are still sitting on low rates. The situation, economically is dire.

U.S. Core Consumer Price Index (excluding food and energy)  has surged to 9.1%,  pushing up the American inflation rate close to 1981 (November) when the rate was at 10%.  Please refer to the chart above of U.S. CPI back to 1969, note the "oil shock" of 1973 that reached a crusado in 1983, interest rates for that inflationary period were at 8%, 11% and 13% (peaking at 15%) until the oil glut of the 80s began and rates started to fall.  The U.S. has now returned to the 1981 level of inflation after four decades, except there is a two key differences one is more serious than the other, the first is import prices are surging (pale blue line) which is imported fuels, components/materials, which all push up domestic costs of production.  Thus adding to further inflationary pressures.  The second issue, is the Federal Reserve's interest rate at the current 1.75% when, if 1981 is compared,  rates were 15%.

No wonder they're worried.

Of course one cannot dismiss the oil issue, pane beneath, showing that West Texas Immediate (WTI) is sticking above $100 per barrel.