Prices rose seven percent during the 2021 period amid supply chain snarls, strong consumer demand, and shortages of critical ingredients, leading to a drop in President Joe Biden’s approval rating.
Washington: US consumer prices rose at an annual rate not seen since February 1982, with an increase of 7.5 percent in the 12 months to January, government data showed on Thursday.
Compared to December, the Labor Department said the consumer price index (CPI) rose 0.6 percent, more than analysts expected, confirming the strength of the inflation wave hitting the world’s largest economy.
The cost of living in the United States has been on the rise for quite some time now. Inflation has jumped 7.5% in the last 40 years. Your dollars are worth less than they were a few decades ago. And it’s only getting worse. But, there are some things you can do to combat rising prices. Read on to find out more!
Prices rose seven percent during the 2021 period amid supply chain snarls, strong consumer demand, and shortages of critical ingredients, fueling a decline in President Joe Biden’s approval rating and a rapid shift in Federal Reserve policy.
The central bank is now giving a strong signal that it will raise interest rates for the first time since the pandemic began at its meeting in March.
The latest data is unlikely to change the bank’s mind, which shows that price increases in many categories are faster than in the previous month.
In the food at home category, groceries and other items rose by one percent, much higher than the 0.4 percent increase in December. For the 12 months, it grew by 7.4 percent.
Energy prices rose 0.9 percent every month and 27 percent for the year, although the data showed a monthly decline in gasoline prices.
Used cars, which have seen big price increases as the economy improves and semiconductor shortages constrain the supply of new cars, saw prices rise 1.5 percent last month, less than the increase in December.