Prices rose at the fastest pace in 40 years in December, increasing 7 percent over the same period a year ago, and cementing 2021 as a year marked by soaring inflation wrought by the ongoing coronavirus pandemic.

Prices were also up 0.5 percent in December compared to the month before.

Indeed, 2021 went down as the worst year for inflation since 1981, as broken supply chains collided with high consumer demand for used cars and construction materials alike. Higher prices seeped into just about everything households and businesses buy, raising alarms for policymakers at the Federal Reserve and White House that inflation has spread throughout the economy.