Stateside inflation climbs to four decade high dialling up pressure on US Fed to go further and faster

Stateside inflation is running at its hottest rate since the early 1980s, piling even more pressure on the US Federal Reserve to launch a stauncher and faster rate hike cycle.

Prices in the US are 7.5 per cent higher than they were a year ago in January, according to fresh figures published today by the US Labor Department, the fastest rate of acceleration since February 1982.

The eye watering inflation print seems certain to encourage Fed Chair Jerome Powell to aggressively attack price rises by unleashing several rate hikes in the first half of this year.

Some experts now see a stronger chance of the world’s most influential central bank defying recent history and hiking rates 50 basis points at its next meeting in March after today’s piping hot print. 

January’s inflation reading smashed Wall Street’s expectations again, continuing a streak of economists and the Fed undercooking the severity of price rises in America. 

Experts were pencilling in inflation to come in at 7.3 per cent.

Worryingly, the elevated cost of living in the US could be a sign of things to come in the UK.

Many of the factors driving inflation higher across the pond – including soaring energy and food costs – are reflected in Britain.

More to follow.