Inflation Soars to Highest Level Since 1982

The Consumer Price Index increased 0.5% in December, bringing the key inflation indicator’s year-over-year increase to 7%, the U.S. Bureau of Labor Statistics reported.

The Consumer Price Index soared to 7% on a year-over-year basis in December, the highest level in almost four decades, the bureau reported Wednesday. Economists surveyed by The Wall Street Journal projected the index would soar past 7.1% in December.

“There’s still a lot of scarcity in the economy. Consumers and businesses are in great financial shape, and they’re willing to pay up for more goods, more services, and more labor,” Sarah House, director and senior economist at Wells Fargo, told The Wall Street Journal.

The core price index, which measures inflation of goods less food and energy, increased 0.6% in December, an increase from November’s 0.5% figure, the Bureau of Labor Statistics reported. Food prices grew 6.3% on a year-over-year basis and energy prices soared 29.3% over the last year.