Inflation Hits Highest Rate Since 1982
AllSides Summary
In the 12 months leading up to December, inflation in the U.S. hit the highest rate seen since 1982.
The consumer price index rose 7% in December from a year prior, according to the Labor Department. This is the third straight month in which annual inflation growth exceeded 6%, indicating that supply shortages are not keeping up with consumer demand. The average price of used cars and trucks rose 37% over the past year, and the average price of gasoline rose 50%. Month-over-month price growth did slow down from 0.8% in November to 0.5% in December. Federal Reserve Chairman Jerome Powell has indicated that he may accelerate interest rate hikes several times in 2022 to curb inflation. Recent public opinion polls suggest that a majority of Americans see the economy and inflation as a major concern, regardless of their political ideology.
Outlets across the spectrum have covered inflation, but right-rated outlets and business-focused sources such as Wall Street Journal and CNBC (Center bias) have covered it more prominently than left-rated sources. Reports on all sides are highlighting goods shortages at grocery stores and high gas prices. One analysis from CNN Business (Lean Left bias) argued that current inflation is "nowhere near as bad" as the price increases seen 40 years ago. Coverage from the right sometimes focused on how inflation raised the costs of holiday shopping by billions of dollars, or how a rising share of small businesses cite inflation as their primary problem. Updated 1/12/22 at 6:19 p.m. ET with more detail.
Featured Coverage of this Story
From the Center
U.S. Inflation Reaches Fastest Pace Since 1982
U.S. inflation closed out 2021 at its highest level since 1982 as robust consumer demand exacerbated pandemic-related supply shortages.
The Labor Department said the consumer-price index—which measures what consumers pay for goods and services—rose 7% in December from the same month a year ago, up from 6.8% in November. That was the fastest pace since 1982 and marked the third straight month in which inflation exceeded 6%.
The so-called core price index, which excludes the often-volatile categories of food and energy, climbed 5.5% in December from a year earlier. That was...
From the Right
Inflation surges 7% in December, highest rate in 40 years
Inflation rose at the fastest pace in nearly four decades in December, as rapid price gains fueled consumer fears about the economy and sent President Biden's approval rating tumbling.
The consumer price index rose 7% in December from a year ago, according to a new Labor Department report released Wednesday, marking the fastest increase since June 1982, when inflation hit 7.1%. The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 0.5% in the one-month period from November.
Economists...
From the Left
U.S. Inflation Hits 39-Year High of 7%, Sets Stage for Fed Hike
U.S. consumer prices soared last year by the most in nearly four decades, illustrating red-hot inflation that sets the stage for the start of Federal Reserve interest-rate hikes as soon as March.
The consumer price index climbed 7% in 2021, the largest 12-month gain since June 1982, according to Labor Department data released Wednesday. The widely followed inflation gauge rose 0.5% from November, exceeding forecasts.
Excluding the volatile food and energy components, so-called core prices accelerated from a month earlier, rising by a larger-than-forecast 0.6%. The measure jumped 5.5% from...
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