The daily business briefing: January 13, 2022

Inflation rises to fastest pace in four decades, the federal deficit falls to a two-year low as tax receipts rise, and more

Grocery shopping in Manhattan
Grocery shopping in Manhattan
(Image credit: Spencer Platt/Getty Images)

1. Consumer prices rise at fastest pace in 4 decades

U.S. inflation rose to an annual rate of 7 percent last year, the Labor Department reported Wednesday. The jump in the consumer price index in December, compared to a year earlier, marked the highest annual inflation since 1982. It was the third straight month above 6 percent. Pandemic-related supply problems contributed to the slight increase from November's 6.8 percent annual rate. The core price index, which excludes volatile food and energy costs, rose by 5.5 percent in December compared to a year earlier, the fastest pace since 1991. "While inflation is likely to peak in the next few months, the overall pace is going to remain a challenge for consumers, businesses, and policy," said Sarah House, director and senior economist at Wells Fargo.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.