Strong rise in U.S. consumer prices gives Fed little respite By Reuters

Strong rise in U.S. consumer prices gives Fed little respite By Reuters
Strong rise in U.S. consumer prices gives Fed little respite © Reuters. FILE PHOTO: U.S. Federal Reserve Board Chair Jerome Powell speaks during his re-nominations hearing of the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill, in Washington, U.S., January 11, 2022. Brendan Smialowski/Pool via REUTERS/File

By Howard Schneider

WASHINGTON (Reuters) – U.S. consumer inflation running at levels not seen in more than a generation will keep the Federal Reserve on track with interest rate hikes and other changes expected in coming months to try to tame the surge in prices.

That’s the take from economists and analysts as year-over-year inflation hit 7% in December, with price increases spreading to a broader set of goods and services, according to the latest Consumer Price Index (CPI) data released on Wednesday. Coupled with ongoing wage hikes and rising costs for long-lasting consumer goods, the December CPI…

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