U.S. inflation up 7.5%, a 40-year high

Inflation grew over the last year at its highest rate in 40 years, according to a report from the Associated Press, reinforcing the Federal Reserve’s decision to begin raising borrowing rates across the economy. Consumer prices reported by the Labor Department jumped 7.5% last month compared with a year earlier, the steepest year-over-year increase since February 1982. The acceleration of prices occurred across the economy, from food and furniture to apartment rents, airline fares, and electricity. Inflation was fueled by shortages of supplies and workers, heavy doses of federal aid, and robust consumer spending. Price increases are not expected to slow significantly anytime soon.