Inflation in the US has hit its highest level in nearly 40 years. Labor Department officials reported on Wednesday that the consumer price index rose 7 percent in December over a year earlier.

The CPI measures what people pay for a basket of goods and services. The index rose at the fastest pace since 1982.

A shortage of workers has contributed to bottlenecks in the supply chain. At the same time, government stimulus packages have left many Americans with extra cash, driving up demand.

Prices for gasoline rose 49.6 percent. Prices for food rose 6.3 percent and those for appliances rose 6 percent.

The Chair of the Federal Reserve has suggested the central bank could raise interest rates to tame inflation. Jerome Powell said he expects the supply chain problems to ease, helping to bring down prices.