US inflation reached highest level in 40 years in January with prices up by 7.5% from 2021
Inflation in the US climbed to its highest level in 40 years in January, with prices rising by 7.5% from a year ago, the Bureau of Labor Statistics reported Thursday.
The rise in the consumer price index (CPI) survey – which measures the costs of a wide variety of goods – was the largest since February 1982. CPI rose 0.6% from December, higher than expected.
Inflation in Americahas been driven higher by soaring demand and a lack of supply caused by Covid-19’s global impact on trade.
Price rises for food, electricity, and shelter were the largest contributors to the increase. The food index rose 0.9% in January following a 0.5% increase in December. The energy index also increased 0.9% over the month.
Rising prices have battered Joe Biden’s approval ratings even as the jobs market has roared back from its pandemic slump. The US economy grew at 5.5% last year, the strongest growth rate since 1984, and more than 1.6m new jobs have been added in the last three months.
But with gas prices, food and housing prices still rising, just 37% of Americans approve of how he is handling the economy, according to a poll conducted by Associated Press-NORC Center for Public Affairs Research.
On Wednesday ahead of the latest CPI release, the White House warned the latest consumer prices snapshot could be high. “We expect a high yearly inflation reading in tomorrow’s data,” said Jen Psaki, the White House press secretary. “Above 7%, as I think some are predicting, would not be a surprise.”
“What we’re looking at is recent trends… the inflationary increases are decreasing month to month,” Psaki said.
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