Prices were up 7% over 2021 amid supply chain turmoil (Representative)
Washington:
U.S. consumer prices rose at an annual rate not seen since February 1982, rising 7.5 percent in the 12 months to January, government data showed Thursday.
Compared to December, the Labor Department said the consumer price index (CPI) rose 0.6 percent, ahead of analysts’ expectations, confirming the potential of the ongoing inflation wave hitting the world’s largest economy.
Prices had jumped seven percent over the course of 2021 amid supply chain disruptions, strong consumer demand and shortages of critical components, leading to a drop in President Joe Biden’s approval ratings and a rapid shift in the Federal Reserve policy.
The central bank is now strongly signaling at its March meeting that it will raise interest rates for the first time since the start of the pandemic.
The latest data is unlikely to change the bank’s mind as price increases accelerate in many categories compared to the previous month.
Groceries and other items in the home food category rose one percent, much higher than the 0.4 percent increase in December. For the 12-month period, it was 7.4 percent higher.
Energy prices were up 0.9 percent month-on-month and were up 27 percent for the year, although the data did show a monthly decline in gasoline prices.
Used car prices, which saw big price increases as the economy recovered and a semiconductor shortage limited new car deliveries, saw prices rise 1.5 percent last month, less than in December.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
