Consumer prices climb 7% in the past year, highest jump since 1982

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Jerome Powell said on Tuesday that the Fed is ready to raise rates if needed.

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The latest government data on inflation indicates consumer prices continue to rise sharply as the pandemic-battered supply chain struggles to keep up with consumer demand again.

The Labor Department said Wednesday that the Consumer Price Index – a measure of the prices US pays for the market basket of everyday goods and services – jumped 7% over the past 12 months. The DOL noted that it was the largest one-year increase since the period ended in June 1982.

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The so-called core index, or measure for all commodities except the more volatile food and energy indices, climbed 5.5% over the previous year – the biggest 12-month change since February 1991. The core index rose 0.6% in December, building on the 0.5% increase seen in November.

The energy index alone increased by 29.3% over the previous year (a rise in the gas index), and the food index increased by 6.3%.

The DOL said sharp increases in the prices of shelter and used cars and trucks were the biggest contributors to driving the all-commodities index in December, but the index for household goods, apparel, new vehicles and medical care also rose in December. Hui. Motor vehicle insurance and entertainment indices were among the few indices to decline last month.

The index climbed 0.5% in December, a slight relief from the 0.8% seen in November.

The latest data comes as economists and policymakers decide how to respond to inflation as data indicates it is not going away. federal Reserve Chair Jerome Powell said on TuesdayThe Fed is set to raise interest rates sharply, originally planned to respond to climbing prices.

This is a developing story. Please check back for updates.

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