Consumer prices rose at record pace in January

February 10, 2022

Prices rose 7.5 percent year-over-year in January, the biggest jump in 40 years, as inflation remains a factor in virtually every aspect of the American economy. “The Fed is counting on inflation abating somewhat on its own,” said Diane Swonk, chief economist at Grant Thornton. “The problem is that even as inflation abates, it may not cool enough not to burn. Some of the inflation we are seeing is becoming more entrenched in the service sector. There is no playbook for derailing inflation in this environment.”

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