U.S. Inflation Climbs to Record High of 7%, Hitting 39-Year High

According to Labor Department data released on Wednesday, the CPI inflation climbed to a largest yearly gain since June 1982 to 7%, increasing 0.5% from November 2021, exceeding forecast. High inflation has crippled the purchasing power of American which has set the stage for Federal Reserve to start rate hike as soon as March.

Higher prices for shelter and used vehicles were largely the main factor contribution to the CPI inflation. Energy prices, which were the driving force for inflation throughout 2021, fell in the last month.

Amid unparalleled demand for goods and supply chain capacity constraints, the unemployment rate has fallen below 4% ,which has bolster the expectations from Fed, which will begin raising interest rates by March.

Source:Economic Data from the Department of Labor | U.S. Department of Labor (dol.gov)

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