One of the hottest topics in the United States in 2022 is the rising inflation, as the U.S. Labor Department’s data published on Wednesday indicated that the consumer price index (CPI) rose to 7% in December. This represents the largest annual jump since 1982. Federal Reserve governor Lael Brainard is set to tell congressional leaders today that the central bank is focused on battling inflation. Moreover, members of the Democratic party are concerned that the rising inflation may cost the Biden administration politically.
CPI Rate Jumps to 7%, Wholesale Prices Spike 9.7%
On January 11, 2022, the U.S. Labor Department published CPI data for the month of December and the metrics indicate that the U.S. inflation rate jumped 7% year-over-year (YoY) and last month was the third consecutive month over 6%. The rise is the highest jump the CPI has seen since June 1982 as inflation is making the cost of goods and services spike exponentially. Basically, the CPI is a measure of a basket of consumer goods and services urban consumers pay for on a regular basis.
After the Labor Department published the statistical estimate, the CPI jump made headlines and ignited a number of discussions about inflation on social media and forums. Making matters worse, the U.S. producer price inflation rate, or wholesale prices, jumped 9.7% in December from a year ago, which is the highest YoY record to date. The inflation levels have caused a number of U.S. officials to grow concerned about the lack of purchasing power Americans are dealing with today.
Federal Reserve Governor to Address Inflation Concerns, State Governors Take Action
On Thursday, Federal Reserve governor Lael Brainard plans to discuss the central bank’s focus on the inflation issue