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Inflation hit a 40 year high and the Federal Reserve raised interest rates

Prices in the United States continued to rise. The inflation rate in December rose by 7% compared with the same period last year, becoming a new high since 1982. This is also the seventh consecutive month that the inflation rate in the United States exceeded 5%. The trend of the epidemic has not subsided, and the inflationary pressure in the United States may continue.

On Wednesday, January 12 local time, the Ministry of labor said that the consumer price index (CPI) rose 0.5% in December from the previous month and 7% from December 2020. The core price index rose 5.5% year-on-year in December, the highest increase since 1991.

Specifically, among the sub categories, the prices of commodities, new cars, used cars and trucks increased the most. As the supply chain restricts the production of new cars, the price of second-hand cars has been the driving factor of soaring inflation during the epidemic. In December, the price of second-hand cars increased by 3.5% month on month and 37.3% compared with the same period last year.

At the same time, housing costs rose 0.4% month on month, up from 3.84% to 4.13% year-on-year. This is the fastest growth rate since February 2007.

In addition, inflation in the service sector rose to 3.7%, the highest level since January 2007; Commodity inflation soared 10.7% year-on-year, the highest level since May 1975.