Inflation in the United States shoots up to 7% in December

The year-on-year rate of inflation in the United States rose in December to 7% (two tenths above that of November), the Bureau of Labor Statistics reported on Wednesday.

It is the highest year-on-year increase since June 1982 and is in line with the predictions of most analysts, who already forecast a price increase of close to 7%.

As for the month-to-month rise, consumer prices rose five tenths of a percentage point in December compared to November, according to this statistic.

If food and fuel prices, which are the most volatile, are excluded, underlying inflation in December was 0.6%, with an annual rate of 5.5%.

Second-hand vehicles and housing

Energy prices fell 0.4% in December for the first time in several months, while food prices rose 0.5%, according to the government report.

The main drivers behind the sharp rise in prices were housing and second-hand vehicles.

This Wednesday’s data adds pressure to the Federal Reserve (Fed, which is responsible for dictating US monetary policy), which has a dual mandate to promote full employment and price stability.

Fed Chairman Jerome Powell is running for a second term at the head of the agency and in his appearance yesterday in the Senate stressed that the agency’s priority at this time is the fight against high inflation, although this means putting less emphasis in the goal of full employment.

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