Annual American inflation hit 7.5%: A near 40-year high

New year, same old high inflation.

A key measure of inflation climbed to a near-40-year high last month. Economists are hopeful that America will reach the peak of the pandemic-era price increases in the early months of 2021. Here's to hoping.

The consumer price index rose 7.5% in the 12 months ending January, not adjusted for seasonal swings, the Bureau of Labor Statistics said Thursday. It was the steepest annual price increase since February 1982 and worse than economists had forecast.

Stripping out food and energy prices, which tend to be more volatile, prices increased by 6% between January 2021 and January 2022, marking the largest increase since August 1982. Food prices rose 7% over the same period, while energy prices rose 27%, led by fuel oil and gasoline prices.

In January alone, prices rose 0.6%, including seasonal adjustments, the same rate as in December and more than economists had predicted. That served up some bad news for people who hoped the monthly data would indicate a slowdown of the price hikes.

On Wednesday, Atlanta Federal Reserve President Raphael Bostic said the nation may be on the cusp of seeing the pace of inflation slow down. But that didn't happen in January.