December Inflation Hits 39-Year High as Energy Prices Balloon

Source: Bureau of Labor Statistics

Inflation accelerated to the highest pace in nearly four decades in December, driven mainly by the surge in energy prices during the month.

• Annual inflation in December stood at 7.0%, the fastest increase in 39 years since the level recorded in June 1982.
• Core inflation surged to 5.5%, marking the highest level recorded in 30 years since February 1991.
• The energy index grew by 29.3%, with all major energy component indexes recording a jump during the month.
• The biggest increase was recorded in the gasoline prices, which ballooned by 48.9%, followed by energy commodities with 48.9%, and fuel oil with 41.0%.
• Outside energy, surges were also seen in used cars and trucks up 37.8%, new vehicles up 10.7%, and food up by 6.3%.
• Compared with the previous month, inflation stood at 0.5%, the slowest in three months since September 2021’s 0.4%.