Consumer prices soared by the most in four decades in January, with inflation across the economy showing few signs of peaking even after months of increases.
The Consumer Price Index’s 7.5% annual surge at the start of 2022 was the biggest leap since 1982 and topped already elevated expectations for a 7.3% rise, based on Bloomberg consensus data. On a month-over-month basis, the CPI unexpectedly posted a 0.6% increase for a back-to-back month, whereas economists had been looking for a deceleration. Core inflation, which strips out volatile food and energy prices, also exceeded estimates, showing a 6.0% year-over-year jump in January.
The report served as one of the clearest affirmations that inflation — described as recently as November by the Federal Reserve as “transitory” — has become a persistent feature of the economic recovery.
February 10, 2022
What economists are saying about soaring inflation
[We live in interesting times.