Political | Process

Consumer prices rose 7% in the 12 months ending in December, according to data released Friday by the Labor Department.

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• Overall prices rose 0.5% from November—higher than the 0.4% economists were expecting, but down from the previous month’s increase of 0.8%.

• Despite the monthly decline, prices jumped another 7% last month on a yearly basis, the largest annual increase since June 1982.

• The overall increase was the result of broad gains across most consumer goods and services, the government said, pointing to rising prices for shelter, food and used cars as some of the largest contributors.

• The decades-high inflation figure comes one day after Federal Reserve Chair Jerome Powell testified before Congress that the central bank will clamp down on stimulus measures to prevent higher inflation from becoming entrenched, saying: “If we have to raise interest rates, we will.”

• The core price index, which excludes volatile energy and food prices, rose 0.6% over the last month—up from 0.5% in November. 

SOURCE: FORBES