Inflation advanced at the fastest 12-month pace in nearly 40 years in December, according to a closely watched measure of the Labor Department released Wednesday.
The consumer price index, which measures the cost of dozens of goods, rose 7 percent, according to the Bureau of Labor Statistics. CPI rose 0.5% month-on-month.
Economists polled by Dow Jones had expected the measure to rise 7% annually, up 0.4% from November.
The annual increase was the fastest since June 1982.
Excluding food and energy prices, the so-called core CPI rose 5.5% year-on-year and 0.6% month-on-month. This compares to estimates of 5.4% and 0.5%.
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