U.S. inflation surges 7% in December, highest rate in 40 years

U.S. inflation rose at the fastest pace in nearly four decades in December, at a level not seen since since June 1982, before President Ronald Reagan’s policies brought crippling late 1970s /early 1980s stagflation under control. Rapid price gains have fueled American consumer fears about the economy.

Inflation

Megan Henney for FOXBusiness:

The consumer price index rose 7% in December from a year ago, according to a new Labor Department report released Wednesday, marking the fastest increase since June 1982, when inflation hit 7.1%. The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 0.5% in the one-month period from November.

So-called core prices, which exclude more volatile measurements of food and energy, soared 5.5% in December from the previous year – a sharp increase from November, when it rose 4.9%. It was the steepest 12-month increase since 1991.

Price increases were widespread: Although energy prices fell 1.1% in December from the previous month, they’re still up 29.3% from last year. Gasoline, on average, costs 49.6% than it did last year. Food prices have also climbed 6.3% higher over the year, while used car and truck prices – a major component of the inflation increase – are up 37.3%. Shelter costs, which make up nearly one-third of the total increase, jumped 0.4% for the month and 4.1% year-over-year, the fastest pace since February 2007.

Rising inflation is eating away at strong gains and wages and salaries that American workers have seen in recent months: Real average hourly earnings rose just 0.1% in December, as the 0.5% inflation increase eroded the 0.6% total wage gain, according to the Labor Department. On an annual basis, real earnings actually declined 2.4%.

MacDailyNews Take: A healthy U.S. economy, consumer confidence, and consumer spending are essential to Apple, as America is Apple’s largest market, by far.

‘Tis best to get a handle on inflation, if you know how, while you still can.MacDailyNews, May 11, 2021

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

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12 Comments

    1. Inflation and economy in general has little to do with any sitting president (except those that encourage further tax break entitlements for the already rich resulting in more national debt). Only a complete moron would think otherwise.

      1. add; (except those that create more money since WWII). Making something “generic” necessarily devalues the object. In this case, the dollar has been made “generic” or devalued…critical aspect of inflation

        Speaking if the “already rich,” $$ creation necessarily benefits those that already have assets. As well, it hurt most, those with little/less. The 2nd part cannot be said about tax breaks.

  1. A classic contrast between one president with zero political experience and another swamp creature of 50 years that only learned to hold his hand out to enrich himself. Should be taught in business schools for 100 years how to enthuse confidence in businesses and the country and how to quickly dismantle progress as the result of incompetence.

    2022 and 2024 bring it on…

    1. So Rule One woulds be to elect non-politicians who has successful business experience – which includes ZERO Bankruptcies. And to avoid failures who have had to file 6 times.

      In terms dog growth in wages, a lot of workers at the bottom of the wage scale, they have found jobs that pay move minimum wage. The might make a burger 10¢ more expensive, but your wages will also be increasing ands some part(s) of the government safety nets bill be reduced.

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