US inflation hits highest level in 40 years in January as prices rise 7.5% from 2021

Inflation in the US climbed to its highest level in 40 years in January, with prices rising by 7.5% from a year ago, the Bureau of Labor Statistics reported on Thursday.

Price rises for food, electricity, and shelter were the largest contributors to the increase. The food index rose 0.9% in January following a 0.5% increase in December. The energy index also increased 0.9% over the month.

The Federal Reserve has signaled that it intends to raise interest rates at its meeting in March in an effort to dampen spending and bring down prices. In a note to investors, Oxford Economics argues the latest CPI news was likely to mean rate rises in the months ahead.

But with gas prices, food and housing prices still rising, just 37% of Americans approve of how he is handling the economy, according to a poll conducted by Associated Press-NORC Center for Public Affairs Research.