US inflation reaches highest level in 40 years

The rise was driven primarily by rising costs of housing, used cars and food, with energy falling slightly. This means that December was the eighth month that inflation year on year had been at 5% or higher. The news comes following a speech from Federal Reserve chair Jerome Powell yesterday, who warned that inflation could become "entrenched" and said that "the economy no longer or wants the very accommodative policies we have had in place". Richard Flynn, managing director at Charles Schwab UK, said: "Today's rise in the rate of inflation falls within investors' expectations. It'...