U.S Inflation Hits 40 Year High At 7.5%, Biden Admits It Is Hurting Americans By Creating Real Stress At Kitchen Table

Inflation increased at the fastest rate in 40 years over the last twelve months, data released by the U.S. Department of Labour on Thursday (Feb 10) showed.

The US consumer price, a key metric of inflation which tracks the cost of goods, rose by 7.5% in January compared with the year before, its largest annual increase since 1982. In Feb 1982, the inflation in U.S HAD reached 7.62 percent.

The soaring inflation was driven by increases in food, electricity and housing prices.

"The food index rose 0.9 percent in January following a 0.5-percent increase in December. The energy index also increased 0.9 percent over the month, with an increase in the electricity index being partially offset by declines in the gasoline index and the natural gas index." the Department of Labour said in a statement.

For months, the Federal Reserve has pursued a path of monetary easing despite surging inflation, projecting that the price hikes will be a 'transitory' phenomenon. But it price rise has been persistent. Fed Chairman Jerome Powell however has indicated that U.S central bank may being reversing its accommodative monetary policy and hike interest rates to curb spiraling inflation.

Responding to record inflation in U.S, President Joe Biden admitted that it is hurting Americans, but he remained optimistic that the problem will be resolved before 2023.

"On higher prices, we have been using every tool at our disposal, and while today is a reminder that Americans’ budgets are being stretched in ways that create real stress at the kitchen table, there are also signs that we will make it through this challenge," Biden said in a statement responding to the report.