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.”