Inflation Rate 2022 Is Absurdly High In The United States Inflation rises 7% over last year in December, the most since 1982 as pricing pressures persist throughout the U.S. economy.
“Core” inflation, which excludes more volatile food and energy prices, rose 5.5% over last year in December, the most since 1991 and the hottest rise over 12 months since 1982.
Capital Economics chief U.S. economist Paul Ashworth said December’s pricing data was “every bit as bad as we expected. We expect the Fed to begin hiking interest rates in March, with a total of four 25bp hikes this year and another four in 2023.”
The cost of shelter and used car and truck prices were the largest contributors to December’s price increases.
Energy prices rose 29.3% over the prior year in December. Furthermore, the most of any category, but fell 0.4% from November to December.
The last several months of US inflation data has shown the massive price increases throughout the land. Moreover, across categories that have been more persistent than many economists predicted in early 2021.
“Once you have inflation, right, like when inflation goes away, things don’t have to get cheaper,” U.S. Bank chief economist Tendayi Kapfidze said in an interview with Yahoo Finance Live on Wednesday. “They just have to stop increasing,” he warned.
In conclusion, this is a huge body blow for President Biden’s Build Back Better Agenda. As a result of the high price tag that accompanied the legislation. Which is what scared Biden’s own party members from supporting it last fall. Senator Manchin from West Virginia will be vindicated with this inflationary number of 7%. Lastly, a figure that will frighten mom and pop voters.