The inflation rate rose 7.5 percent from the previous January as price increases continued.

The latest numbers come as the US Federal Reserve prepares to raise core interest rates next month.
Soaring prices continue to hit US shoppers as January inflation rose faster than expected year-on-year to 7.5 percent, surpassing December's 40-year high.

The latest release of the monthly consumer price index from the Bureau of Labor Statistics on Thursday shows that price increases were most pronounced in food, electricity and housing.

The food and energy indices each rose 0.9 percent, and the housing index rose 0.3 percent.

The "core" CPI, excluding the more volatile food and energy indices, rose 0.6 percent in January, the same as in December.

Home equipment and operations indexes rose 1.3 percent, used cars and trucks rose 1.5 percent, medical supplies rose 0.7 percent, and apparel rose 1 percent. .1 percent.

The rise in consumer prices appears sustained, despite earlier claims by Federal Reserve Chairman Jerome Powell that the impact is temporary.

Throughout the pandemic, as demand has increased and changed, disrupting supply chains and congesting ports, manufacturers have raised prices across the entire market, from groceries to housewares to auto parts.

On NBC News' Grocery Tracker, the national average of egg prices rose the fastest in January, by 11 cents, according to NielsenIQ supermarket checkout data. Orange juice rose the most, 12 cents. Bacon prices were down slightly, down 5 cents, but remained extremely high, up $1.24 year over year.

But as annual supply contracts began to be renegotiated in the fourth quarter, major manufacturers are not only passing on higher input, labor and transportation costs to consumers, they are also increasing their profit margins.

Amazon, Disney, Mattel and Starbucks, among other large consumer-facing companies, recently announced possible price increases for 2022.

Consumers with pent-up demand, increasing access to credit and more flexible savings at the bank, have largely ignored these increases and retained an appetite to get down and shop.

"Despite heroic efforts and a record year of production, we have not been able to keep pace with growing consumer demand," Hershey Co. CEO and President Michele Buck said during an earnings call last week. pass. Like many manufacturers, the company is trying to add more labor and production capacity, adding four lines last year, but she cited Omicron's increase as a rise in worker absenteeism and a slowdown in production. Hamstring tears will continue "into the second half of the year," she said. In the meantime, it would be "optimizing our timetable for action."

Manufacturers have cut coupons and promotions following surges in demand when the pandemic hit in March. Since then, they have eased some promotions, but have yet to return to pre-pandemic levels.

President Joe Biden responded to the latest numbers Thursday, calling them "a reminder that Americans' budgets are being stretched in ways that are causing real stress on the kitchen table."

“Although today's report is elevated, forecasters continue to forecast a significant decline in inflation through the end of 2022,” Biden said, pointing to rising wages and falling unemployment as positives in the data.