Consumer Price Index Rose 7.5% in 2021

The Consumer Price Index rose 7.5% in the 12 months ending in January which is a near 40 year high. According to an announcement this morning from the Bureau of Labor Statistics, the 7.5% rise was the steepest annual price increase since February 1982 and worse than economists had predicted. Economists however are hopeful that the nation will reach the peak of the pandemic-era pricing in the early months of 2021. Food and energy prices increased by 6% between this January and last January making the largest increase since August 1982. Food rose 7% over the same period while energy rose 27% and a big factor of that was fuel oil and gasoline prices. Last month, prices increased across the board including for housing, furniture, used cars and healthcare while hotel rates fell.