Consumer price index, a gauge that measures costs across dozens of items, increased 7%, according to the department’s Bureau of Labor Statistics. On a monthly basis, CPI increased 0.5% on an annual basis and 0.4% from November. The annual move was the fastest increase since June 1982. Federal Reserve officials are watching the inflation data closely and are widely expected to raise interest rates this year in an effort to combat rising prices and as the jobs picture approaches full employment. Despite the strong gain, stock market futures rose following the news while government bond yields were mostly negative. Inflation has been eating into otherwise strong wage gains for workers. However, real average hourly earnings posted a small 0.1% increase for the month, as the. . . .
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