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.

Despite the strong gain, stock market futures rose following the news while government bond yields were mostly negative.

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 largest annual growth since February 1991.

Is this why I can’t get cream cheese!?!?!!?
cnbc.com