CUNA Research: CPI Reaches 40-Year High, Signaling Increase in Interest Rates

January 12, 2022

January 12, 2022
Washington, DC


Credit Union National Association (CUNA) Senior Economist Dawit Kebede, Ph.D., issued the following statement in response to the Labor Department’s December Consumer Price Index Report:


“Consumer prices continued to rise in December, reaching a record high we haven’t seen in 40 years. Supply chain disruptions, high demand for goods that exceeds pre-pandemic trends, and labor shortages increased prices for most consumer items.

“A prolonged surge of the omicron variant may continue to push prices higher by worsening labor shortages and supply disruptions, which showed signs of improvement in December. Recent price increases in housing contribute the most to overall inflation given their larger weight in household spending. This may show a shift from goods to services as the main driver of inflation moving forward.

“The Federal Reserve will most likely raise interest rates earlier than anticipated to control inflation. This is in addition to ending its support for the economy in the form of large asset purchases. This will raise the cost of borrowing for consumers and will reduce excess demand for goods.” 


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Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 120 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit To find your nearest credit union, visit


Lauren Williams 
CUNA Communications