Inflation rises 7% over the past year, highest since 1982

Inflation plowed ahead at its fastest 12-month pace in nearly 40 years during December, according to a closely watched gauge the Labor Department released Wednesday.

The 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%.

Economists surveyed by Dow Jones had been expecting the measure to increase 7% on an annual basis and 0.4% from November.

The annual move was the fastest increase since June 1982.

Excluding food and energy prices, so-called core CPI increased 5.5% year over year and 0.6% from the previous month. That compared to estimates of 5.4% and 0.5%. For core inflation, it was the fastest annual increase since February 1991.

Shelter costs, which make up about one-third of the total rose 0.4% for the month and 4.1% for the year.

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