Inflation Was High Last Year (Surprise!)

📈 US consumer prices increased by 7% in 2021, the fastest rate of inflation since 1982, according to the Labor Department's Consumer Price Index published yesterday.

• The core index, which excludes food and energy, jumped 5.5% last year, its highest rate of growth since 1991.
• Notable yearly increases include gasoline (+50%), used cars and trucks (+37%), and food and beverages (+6%).
• On a monthly basis, the CPI increased 0.5% in December from the preceding month, decelerating from October and November.

+Looking ahead: The Fed plans to increase interest rates to combat inflation starting in March when pandemic-era stimulus measures wind down entirely. Goldman Sachs released a report this week projecting four interest rate hikes in the coming year, one more than previously thought.