U.S Inflation Hits New 40-Year High

U.S Inflation Hits New 40-Year High

Inflation rose 0.6% in January from a month earlier, according to Labor Department data released Thursday. 

The consumer price index climbed 7.5% from a year earlier following a 7% annual gain in December.

 “U.S. consumer prices surged in January by more than expected, sending the annual inflation rate to a fresh four-decade high and adding more urgency to the Federal Reserve’s plans to start raising interest rates,” reported Bloomberg on Thursday. 

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“Economists had expected the pace of price rises to soften to 0.4%,” added Axios. “The new data undermines the Biden administration's hopes that inflation would soften in 2022.”

“Biden on Thursday acknowledged the stress on American families' budgets,” reported CNN. “However, Biden claimed, ‘There are also signs that we will make it through this challenge.’”

"On higher prices, we have been using every tool at our disposal, and while today is a reminder that Americans' budgets are being stretched in ways that create real stress at the kitchen table, there are also signs that we will make it through this challenge," Biden said.