Inflation hit a four-decade high in December, forcing Americans to pay steeper prices for everyday items such as groceries and gas, the feds said Wednesday.
hit a four-decade high in December, forcing Americans to pay steeper prices for everyday items such as groceries and gas, the feds said Wednesday.
The latest surge marked the highest annual increase since June 1982. Inflation has exceeded 6 percent for three consecutive months. The increase in costs for goods and services has effectively erased wage gains despite favorable hiring conditions for American workers. Employers posted 10.6 million job openings in November and the unemployment rate is currently 3.9 percent, close to what the Federal Reserve considers full employment.
“If we see inflation persisting at high levels longer than expected, if we have to raise interest rates more over time, we will,” Powell added. “We will use our tools to get inflation back.”Powell said he expects inflationary pressures to continue well into next year.