US inflation reaches highest peak in 40 years

Driven by by shelter, used cars and food

Elliot Gulliver-Needham
clock • 2 min read
The Federal Reserve

The Federal Reserve

US inflation climbed to 7% in December 2021, reaching the highest level since June 1982.

The rise was driven primarily by shelter, used cars and food, with energy falling slightly. This means that December was the eighth month that inflation year on year had been at 5% or higher. The news comes following a speech from Federal Reserve chair Jerome Powell yesterday, who warned that inflation could become "entrenched" and said that "the economy no longer or wants the very accommodative policies we have had in place". Richard Flynn, managing director at Charles Schwab UK, said: "Today's rise in the rate of inflation falls within investors' expectations. It's clear that bot...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on US

Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Markets are generally positive in months with rate rises

Rate hikes could have 'benign' impact on equities

Follows Fed 75bps hike

clock 20 June 2022 • 1 min read
Sectors in the US stock market that have been leaders over the last decade have come to a sudden stop in terms of their outperformance of the broader market since the start of 2022.

Deep Dive: A paradigm shift for US equities

'Valuations matter'

clock 15 June 2022 • 5 min read