Consumer prices rose at the fastest pace since 1981, worse than what the experts expected.
According to BLS data, consumer inflation rose 0.6% in January, and a whopping 7.5% on a yearly basis.
Core inflation, which means all prices except food and energy, also rose more than expected, at 6%.
Experts expected the CPI to rise by 0.4%, to 7.2% year-over-year. Core inflation predictions were at 5.9%.
The largest contributors to the CPI increase were food, electricity, and shelter. In particular, gasoline prices rose a whopping 40%.
Utility gas rose 23.9%, while used cars and trucks were up 40% from last year.
A high CPI reading will likely increase the urgency for the Fed to raise rates, in order to control inflation. Unfortunately, low rates boosted stock valuations to outrageous levels.
Some investors worry a rate hike will mean a substantial correction in stocks.