January 1, Inflation Hits Highest Level Since 1982

The price for consumer goods and services in the U.S. at rates unseen in decades, having jumped 7% in December compared to the same month last year.

The department confirmed that the consumer price index (CPI) rose 0.5% since November and 7% compared to December 2020.

Officials said shelter and used cars and trucks were the “largest contributors to the seasonally adjusted all items increase.”

Food costs were also a factor, but the 0.5% increase was a smaller jump than in recent months. Household furnishings, apparel, new vehicles, and medical care also became more expensive last month.

The announcement from the Labor Department comes as a blow to the Biden administration, which previously deemed the rising prices as a “transitory” trend, spurred by pandemic-driven supply chain issues.

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US inflation jumped 7% in December as prices rise at rates unseen in decades