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US consumer prices rise at fastest rate in nearly 40 years - BBC News
Jan 12, 2022 1 min, 11 secs
Prices in the US are rising at their fastest rate in almost 40 years, with inflation up 7% year-on-year in December.

December's increase marked the third month in a row that the US annual inflation rate has hovered above 6% - well north of policymakers' 2% target.

Housing costs were up 4.1% year-on-year, while the cost of groceries rose 6.5% - compared to a 1.5% annual average over the last 10 years.

The cost of energy dropped 0.4% from November to December - its first decline since April.

Reacting to the latest report, President Joe Biden said that it "demonstrates that we are making progress in slowing the rate of price increases".

The Organisation for Economic Cooperation and Development, which represents more than 30 of the world's largest economies, said this week that inflation among its members had hit its highest rate in 25 years in November.

In the UK, inflation hit a 10-year high in November, while globally, prices are rising at their fastest pace since 2008, according to the World Bank.

Sarah House, economist at Wells Fargo, said it is no longer likely that inflation will fade naturally as the pandemic abates, pointing to worker shortages and wages, which have also been rising - though not as fast as prices.

Official inflation figures from China on Thursday showed prices rose less than expected in November, with producer prices up 10.3% and consumer prices up 1.5%.

UK prices rise at fastest rate in 10 years.

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