Inflation Hits Highest Rate Since 1982

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.