U.S. inflation in January surged at fastest rate in 40 years

The annual rate of U.S. inflation is rising at its fastest rate in 40 years as supply-chain disruptions and rising transportation costs show no sign of abating.

A key inflation gauge, the Consumer Price Index, rose 7.5% from a year ago, the Labor Department reported Thursday — the largest increase since May of 1982. Core inflation, which strips out volatile food and energy costs, was 6%. The CPI index rose 0.6% in January, the same pace it showed in December but a slowdown from the 0.9% monthly increase in October.

Food, energy and housing prices increased the fastest last month. The price of gasoline is up 40% year-over-year, with recent tensions in Eastern Europe driving costs even higher. Used cars and trucks are up 40.5%, food has climbed 7.4% and shelter has risen 4.4%.