Inflation climbed to its highest level in 40 years at the end of 2021, a troubling development for President Biden and economic policymakers as rapid price gains erode consumer confidence and cast a shadow of uncertainty over the economy’s future.The Consumer Price Index rose 7 percent in the year through December, and 5.5 percent after stripping out volatile prices such as food and fuel. The last time the main inflation index eclipsed 7 percent was 1982.Policymakers have spent months waiting for inflation to fade, hoping supply chain problems might ease and allow companies to catch up with booming consumer demand. Instead, continued waves of the coronavirus have locked down factories, and shipping companies have struggled to work through extended backlogs as consumers continue to buy foreign goods at a rapid clip. Forecasters expect price gains to weaken this year, but how quickly that will happen is unclear, posing a big economic policy question for Mr. Biden and the Federal Reserve.“Obviously 7 …
