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US inflation hits fresh 40-year high of 7.9%

U.S. consumer price gains accelerated in February to a fresh 40-year high on rising gasoline, food...

👤 H K Badal10 March 2022 5:54 PM GMT
US inflation hits fresh 40-year high of 7.9%
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U.S. consumer price gains accelerated in February to a fresh 40-year high on rising gasoline, food and housing costs, with inflation poised to rise even further following Russia's invasion of Ukraine.

The consumer price index jumped 7.9% from a year earlier following a 7.5% annual gain in January, Labor Department data showed on Mar 8. The widely followed inflation gauge rose 0.8% in February from a month earlier, reflecting higher gasoline, food and shelter costs. Both readings matched the median projections of economists in a Bloomberg survey.

Excluding volatile food and energy components, so-called core prices increased 0.5% from a month earlier and 6.4% from a year ago.

The data illustrate the extent to which inflation was tightening its grip on the economy before Russia's war brought about a spike in commodities, including the highest retail gasoline price on record.

Most economists had expected February would be the peak for annual inflation, but the conflict likely means even higher inflation prints in the coming months.