Highest since 1982.
QUICK FACTS:
- An inflation gauge that monitored by the Federal Reserve jumped 6.1% in January compared with a year ago, The Associated Press (AP) reports.
- The figure reported Friday by the Commerce Department was the largest year-over-year rise since 1982.
- Excluding volatile food and energy prices, core inflation increased 5.2% in January from a year earlier, AP notes.
- The record inflation was caused by high consumer spending combined with widespread product and worker shortages.
- While officials try to blame soaring inflation on the conflict between Russia and Ukraine, January’s data show inflation was already picking up before the invasion, from December to January, prices rising 0.6%, up from 0.5% in the previous month.
INFLATION TO KEEP RISING:
- Inflation is expected to remain high, according to AP, and perhaps accelerate in the coming months.
BACKGROUND:
- The highest U.S. inflation in four decades is a heavy burden for U.S. households, especially lower-income families faced with elevated costs for food, fuel, and rent, AP notes.
- Even though the record-setting inflation occurred under his watch, Joe Biden recently said that he would do “everything I can” to keep gas prices in check, though he did not spell out details, only warning that oil and gas companies “should not exploit this moment” by raising prices at the pump.
