Lost in all the talk about Ukraine and Russia, inflation is still spiking and last month hit another 40 year high at 7.9%. These numbers are expected to get worse in the months ahead. Of course if you are buying groceries, building materials or just filling your gas tank, you know these numbers are far worse. Thanks Joe!
U.S. consumers paid more for a variety of goods and services in February compared to the prior month and year, with prices climbing across the economy amid lingering supply and demand imbalances.
The Bureau of Labor Statistics’ Consumer Price Index (CPI) rose 7.9% in February compared to last year, marking the fastest annual jump since 1982. This took out January’s previous 40-year high rate of 7.5%, and matched consensus economist expectations, according to Bloomberg data.
On a month-over-month basis, consumer price increases also accelerated. The CPI rose 0.8% in February compared to January after increasing by 0.6% during the prior month.
A surge in energy prices was one of the key contributors to the latest red-hot CPI print. Even before Russia invaded Ukraine and raised concerns over global energy disruptions, oil and gas prices were on the rise, as demand for fuel oil and other energy products outstripped tight global supplies. In February, the energy index jumped 3.5% for the largest monthly rise since October. And over last year, the energy index was up 25.6%.