U.S. inflation continues to soar
January marked the tenth straight month of inflation above 4.0% in the U.S
By Siddhartha Bhattacharya, ATB Economics 10 February 2022 1 min read
Inflation in the U.S. is the highest it has been since February 1982. Relative to a year ago, the unadjusted consumer price index for all urban consumers was up 7.5% in January, surpassing the 39-year high reached in December (+7.0%).
January marked the tenth straight month of inflation above 4.0% in the U.S. Compared to the level prior to the pandemic, consumer prices in the US stood 9.0% higher relative to January 2020.
Allowing for seasonal variation, prices ticked up 0.6% from December. This was mostly a result of increases in food (+0.9%) and shelter (+0.3%) costs. Energy prices contributed to the overall uptick too as lower gasoline (-0.8%) and natural gas (-0.5%) prices were largely offset by a 4.2% increase in electricity prices.
In 2021, annual consumer prices in the U.S. soared 4.7% outpacing the Canadian inflation rate, which increased 3.4%.
Canada’s consumer price story for January is scheduled for release next week.
The U.S. Federal Reserve is expected to begin raising interest rates to help cool inflation following its next meeting on March 15-16.
Answer to the previous trivia question: At $1.8 billion, Nunavut had the highest level of international merchandise exports among the three territories in 2021.
Today’s trivia question: When did Hawaii become a state?