The US Consumer Price Index (CPI) rose 7.5% in January from a year ago, the highest level in 40 years, as the Federal Reserve prepares to raise interest rates to combat inflation.
The CPI, which measures the prices of a basket of goods and services, rose 0.6% in January from the previous month, the largest monthly increase since February 2021.
The increase was broad-based, with increases in the prices of food, energy, housing, and transportation.
The Fed is expected to raise interest rates by 0.25% at its meeting next week in an effort to combat inflation.
"Inflation is a major challenge for American families," said President Joe Biden in a statement. "I am committed to bringing it down."
Inflation has been rising in the US for several months, driven by a combination of factors, including strong consumer demand, supply chain disruptions, and higher energy prices.
The Fed has been trying to combat inflation by raising interest rates. However, higher interest rates can also slow economic growth, which could lead to job losses.
The rise in inflation is likely to have a significant impact on the US economy. It is likely to lead to higher interest rates, which could slow economic growth. It is also likely to lead to higher prices for goods and services, which could erode consumer spending.Date Of Update: 16 April 2023, 07:23