Consumer prices jumped 7% last year, biggest gain since 1982

Inflation soared 7% in 2021, the biggest increase in nearly 40 years, the Labor Department said on Wednesday.

The Consumer Price Index, which tracks the price of a broad range of goods and services, rose 0.5% in December, down from a 0.8% rise in November. Core inflation, which strips out volatile food and gas prices, rose 0.6% in December and 5.5% from a year ago.

Price increases for shelter and used cars drove the surge. Used car and truck prices shot up 37% last year, with the average used vehicle now costing $29,000, according to Edmunds. Shelter costs rose 4.1%, while energy costs increased 29% in December from the year-ago period but dropped from the previous month.