Inflation Hits Another Four-Decade High. Prices Rose More Than Expected.
U.S. Consumer prices surged again in January to 7.5% and stayed at a 40-year high, suggesting the upward pressure on consumer prices is unlikely to relent soon and putting more pressure on the Federal Reserve to act.
The consumer price index rose 0.6% in the first month of the new year, driven by big advances in rent, food and energy. The increase exceeded Wall Street’s forecast of a 0.4% gain.
The 7.5% surge in the cost of living in the past 12 months is the biggest since February 1982.
The Fed is on track to raise interest rates in March for the first time in four years to try to snuff out the surge in inflation.
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