New York, Wednesday, 12 January 2022 -
In the final month of 2021, annual inflation in the United States increased to 7%, a new record since June 1982, in line with market estimates and up from 6.8% in November.
The largest contributor to the increase was energy, which rose 29.3 percent vs. 33.3 percent in November, with gasoline prices up 49.6 percent vs. 58.1 percent. However, inflation increased for shelter (4.1 percent vs. 3.8 percent); food (6.3 percent vs. 6.1 percent), particularly food at home (6.5 percent vs. 6.4 percent); new vehicles (11.8 percent vs. 11.1 percent); used cars and trucks (37.3 percent vs. 31.4 percent); apparel (5.8% vs. 5%); and medical care services (5.8% vs. 5 percent) (2.5 percent vs 2.1 percent ).
Due to pandemic-induced supply constraints, mounting energy costs, labour shortages, rising demand, and a low base impact from 2020, inflation soared in 2021. Inflationary pressures are expected to persist far beyond 2022, and Fed Chair Powell recently committed to do whatever it takes to keep prices under control, including raising interest rates.
Source: U.S. Bureau of Labour Statistics
(Edited by: The Decision Maker)