US Inflation Reaches 40-Year High with Larger-Than-Forecast Gain

U.S. consumer price index jumped by 7.5% in January, higher than the forecast of 7.3% by economists, while representing the fastest pace since 1982.

The rise in consumer price followed a 7% annual gain in December, according to Labor Department data released Thursday.

Excluding the volatile food and energy components, core prices rose 6% from the same period last year, also the most since 1982, and 0.6% from a month earlier.

Shelter is the single biggest player of CPI (33% of Index) with rents soar 18% over the last year, while home prices jump 19%.