US inflation jumped 7% in December last year for first time since 1982

Inflation in the US jumped 7 per cent in December last year at its fastest pace in nearly 40 years i.e. since 1982.

Inflation jumped at its fastest pace in nearly 40 years last month, a 7 per cent spike from a year earlier that is increasing household expenses, eating into wage gains and heaping pressure on President Joe Biden and the Federal Reserve to address what has become the biggest threat to the US economy.

Prices have risen sharply for cars, gas, food and furniture as part of a rapid recovery from the pandemic recession that was fuelled by vast infusions of government aid and emergency intervention by the Fed, which slashed interest rates.