Inflation rose 7.9% in the US
Economy update – Inflation rose 7.9% in the US – the highest in more than 40 years.
Inflation rose by 7.9% in February 2022, as food and energy costs pushed prices to the highest they have been in more than 40 years.
The February acceleration was the fastest pace since January 1982, back when the U.S. economy confronted the twin threat of higher inflation and reduced economic growth.
Highest in more than 40 years
Inflation grew worse in February amid the escalating crisis in Ukraine and price pressures that became more entrenched.
Analysts believe that corporations are using the Ukraine crisis to bring in price hikes under the radar. Putin is not to blame for the inflation. It is American businesses that are using this crisis as a guise to increase prices.
The consumer price index, which measures a wide-ranging basket of goods and services, increased 7.9% over the past 12 months, a fresh 40-year high for the closely followed gauge, according to the Labor Department’s Bureau of Labor Statistics.
If we exclude volatile food and energy prices, so-called core inflation rose 6.4%, in line with estimates and the highest since August 1982. On a monthly basis, core CPI was up 0.5, also consistent with Wall Street expectations.
The rise in inflation meant worker paychecks fell further behind despite what otherwise would be considered strong increases.
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