How does inflation affect your pocket?
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(CNN) ––
The consumer price inflation index in the United States reached its highest level since June 1982, almost 40 years ago, with 7% last year.
This means that the price increase during the pandemic did not stop in the last month of 2021. There was also a faster rate of increase than the 6.8% in November and higher than economists predicted.
The prices of almost everything in the United States, from cars and gasoline to food and clothing, have risen at their fastest rate in decades.
Inflation: everything you need to know about this economic phenomenon
Overall, consumer prices rose in 2021 at the fastest rate in 39 years.
Which means that this is the worst inflation ever experienced by anyone who is not about to retire or is older.
Since mid-December, the Federal Reserve has warned that it expects to raise interest rates in 2022 more than projected in September.
The US central bank, which first announced in November that it was "reducing" its monthly asset purchases, said at the time that it will do so at a faster pace.
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Starting in January, the Fed will buy $ 20 billion less in Treasury securities and $ 10 billion less in mortgage-backed securities.
That leaves the monthly shopping list at $ 40 billion for Treasury securities and $ 20 billion for mortgage-backed securities.
Inflation
