People shop at a grocery store in New York.
The Labor Department said Friday that inflation accelerated at its fastest pace since 1982, putting pressure on the economic recovery and raising the stakes for the Federal Reserve.
The consumer price index, which measures the cost of a wide-ranging basket of goods and services, rose 0.8% for the month, good for a 6.8% pace on a year over year basis and the fastest rate since June 1982.
Excluding food and energy prices, core inflation was up 4.9% for the month and 4.8% for the year, which was the strongest pickup since 1991.
The annual gain for headline and core was estimated by the Dow Jones.
Price increases came from the same people.
Energy prices have risen since November of 2020. The gasoline alone is up 58.1%.
Food prices have gone up 6.1% over the year, while used car and truck prices have gone up 31.4%, following a 2.5% increase last month.
The Labor Department said that the food and energy component's gains were the fastest in 13 years.
Shelter costs, which make up about one-third of the CPI, increased 3.8% on the year, the highest since 2007, as the housing crisis accelerated.
Stock index futures on Wall Street rose, while government bond yields climbed, as markets reacted positively to the report. Friday's report could show even sharper inflation than the headline number suggests.
Inflation remains the biggest problem for the recovery as unemployment claims are running at their lowest pace since 1969 and GDP is expected to show strong gains to end 2021.
The data is being watched by the Federal Reserve.
The central bank has indicated that they will be slowing the help they are giving in an effort to control inflation. The Fed is expected to double its asset purchases to $30 billion a month in January. The Fed would be able to raise interest rates as soon as next spring.
A recent CNBC survey shows that President Joe Biden's approval rating is stuck at just 41%, due in large part to the fact that many people disapprove of his economic record.
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