US consumer prices rise at fastest rate in nearly 40 years

Source: BBC News [UK state media]

“Prices in the US are rising at their fastest rate in almost 40 years, with inflation up 7% year-on-year in December. Strong demand and scarce supply for key items such as cars are driving the increases, which are putting pressure on policymakers to act. The US central bank is expected to raise interest rates this year. The rise in borrowing costs is aimed at reducing demand by making purchases such as cars more expensive. December’s increase marked the third month in a row that the US annual inflation rate has hovered above 6% — well north of policymakers’ 2% target. The last time the pace of inflation exceeded that level was 1982. Housing costs were up 4.1% year-on-year, while the cost of groceries rose 6.5%, compared to a 1.5% annual average over the last 10 years. Wednesday’s report from the Labor Department showed signs that some of the pressures may be easing.” (01/12/22)