US Consumer prices could exceed 7% in January: WH
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Inflation data shows that the US is only heading for the worst as consumer prices will top 7% in January.
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Drivers line up to fill their tanks with gas in Jackson, Mississippi, on May 11, 2021, amid a gas crisis in the United Statesز
An imminent government consumer price report will likely show that US inflation hit another high the first month of 2022, the White House warned Wednesday.
US government data showed that consumer prices rose by 7% throughout 2021, a record for the past four decades, and the Labor Department's consumer price index (CPI) data set for release tomorrow will likely show a stark spike compared to January of last year.
"We expect a high yearly inflation reading in tomorrow's data," White House Press Secretary Jen Psaki told reporters. "Above seven percent, as I think some are predicting, would not be a surprise."
Biden's approval ratings have been in freefall as inflation has ravaged the United States, exacerbated by a supply chain crisis, component shortages, and the rebound from COVID-19.
Price increases have severely affected used cars and energy, most notably gasoline, but they've also heavily affected food and rent.
Many economists expect the price surge to moderate throughout 2022 as the shortages and delays are sorted out, and as the Federal Reserves raises interest rates and ends its easy-money policies intended to support the economy during the pandemic.
"What we're looking at is recent trends... the inflationary increases are decreasing month to month," Psaki said.
The CPI increased by 0.5% in December from November, which was still less than the 0.8% increase between October-November.
"Leading outside forecasters continue to project that inflation is expected to decrease and expected to moderate over the course of this year," she added.
According to economists, the month-on-month change for January 2022 will be 0.5%, just like December. For core CPI, which is calculated without taking food and energy prices into consideration, economists anticipate for the prices to increase by 0.5%, slightly less than in December.
