US inflation hits 7% for first time since 1982; cost of living squeeze continues – as it happened

Cost of living soars on both sides of the Atlantic, as US inflation jumps, and UK consumers face higher gas bills and hotel costs

• Latest: US CPI inflation rate hits 7%...highest since June 1982
• Shelter, used cars, food, clothing all rising..
• ..but energy prices finally dipped in December
• IEA blames Russia for gas crisis
• Whitbread: Cost inflation likely to be 7- 8%
• Centrica boss says high energy bills could last two years

In the City, the FTSE 100 index has hit its highest level in almost two years.

The blue-chip index hit 7551 points this morning, up 0.8%, its highest level since late January 2020 -- before the pandemic hit global markets.

Driving confidence were remarks by Federal Reserve chairman Jay Powell that the central bank would do everything it could to stop inflation running out of control.

The top FTSE 100 six risers were all metal producers, and this sector is a bellwether for global economic activity.