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Thndr Claps » U.S. Claps » Economy 🏢 » U.S. Inflation Hits 7% Year-Over-Year; Highest in Almost Four Decades🎈

U.S. Inflation Hits 7% Year-Over-Year; Highest in Almost Four Decades🎈

by Shams Abbas
January 12, 2022

The U.S. consumer price index (CPI) rose by 0.5% in December 2021, & by 7% throughout 2021, the highest since June 1982.

More Details🧐 Rising inflation was driven by rising prices of rent & used vehicle prices, which have been a major driver of the rise in inflation during the pandemic due to supply chain constraints.

Why is this Important🤔 Federal Reserve chair Jerome Powell said on Tuesday, January 11th, 2022, that the U.S. economy is in a healthy state, & requires a tighter monetary policy. This simply confirms what investors already knew: increased interest rates & faster tapering. If these policies fail to tame the “persistent inflation”, Powell said that it “could lead to a recession.”

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