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Key inflation gauge hit 6.1% in January, highest since 1982

Ukraine Tensions Global Economy
Posted at 5:51 AM, Feb 25, 2022
and last updated 2022-02-25 08:54:45-05

WASHINGTON (AP) — An inflation gauge that is closely monitored by the Federal Reserve jumped 6.1% in January compared with a year ago, the latest evidence that Americans are enduring sharp price increases that will likely worsen after Russia's invasion of Ukraine.

It was the largest year-over-year rise since 1982.

Robust consumer spending has combined with widespread product and worker shortages to create the highest inflation in four decades — a heavy burden for U.S. households, especially lower-income families faced with elevated costs for food, fuel and rent.

At the same time, consumers as a whole largely shrugged off the higher prices last month and boosted their spending 2.1% from December to January.