U.S. inflation in December reached a 40-year high of 7%

Annual inflation in the U.S. in December last year rose at the fastest rate in 40 years, increasing by 7% compared to the same period in 2020, in monthly terms, consumer prices rose by 0.5%. This follows data released on January 12 by the country’s Labor Department.

Experts had expected an annual inflation rate of 7.1% and a monthly rate of 0.4%.

In a written statement released by the White House, U.S. President Joe Biden noted “a significant decline in core inflation [in December] compared to last month, as well as lower gasoline and food prices. These indicators, he said, “demonstrate that [the U.S.] is making progress in slowing the pace of price increases.”

“At the same time, this report underscores that we still have work to do, as the rate of price increases is still too high and cuts into household budgets,” the head of state said.

At the same time, he called inflation “a global problem emerging in virtually every developed country as it emerges from the pandemic-induced economic downturn.”

Earlier, on December 2, experts warned that in 2023, the inflation rate in the U.S. will reach 15%. The country is also predicted to have a constitutional crisis against the backdrop of the midterm congressional elections.