The US suffers its highest inflation in the last 40 years
Year-over-year inflation rose to 7.9% in the United States and marks a new all-time high not seen since January 1982, according to the most recent report of the Consumer Price Index, published by the Bureau of Labor Statistics.
During the past month, gasoline had an increase of 6.6%, its largest monthly increase since April 2020, according to the report.
The biggest increases were in gasoline, housing and food, three indicators that are hurting the pockets of American families with a rapid rise in prices.
This Thursday, the average price of gasoline nationwide is $4.31 dollars, according to AAA. While, in California, the average price of a gallon is $5.69 dollars.
The most recent report from the Department of Labor, which puts inflation at a peak of 7.9% annually, considers the price movements of the last 12 months, which leaves out the escalation in the cost of gasoline seen during March.
Moved by the conflict between Ukraine and Russia and the disturbances in the energy market, the inflationary data for February could be exceeded next month when the rapid rises in the price of a gallon of gasoline in the whole country are considered.
But the inflationary rise has not only been dragged by the high prices of gasoline, but it was also driven by greater consumer demand, from the reactivation of the economy, the rise in wages and the disturbances of the chains of supply.
"We think there will be even stronger inflation reports in the coming months, suggesting that the Federal Reserve needs to accelerate its rate hike plans, even with the uncertainty of the crisis in Russia and Ukraine," said Robert Schein, director of Blanke Schein Wealth Management Investments.
The FED has already announced that it will resume a policy of raising its reference rate, with which it seeks to increase the value of credit to control consumption. His adjustment plans are contemplated to start next week.
The inflation data for food, one of the components that brought annual inflation to a record 7.9%, had an upward adjustment of 8.6% in the last 12 months, the highest figure since 1981.
The seven main indices of food groups in the country's stores had increases.
-Fruits and vegetables: 2.3%-Fresh fruits: 3.7%-Dairy and similar: 1.9%-Cereals and bakery products: 1.1%-Other foods: 0.8%-Meals outside the home: 0.4%-Full service meals: 0.6 %
Author: MiamiDiario JM 11:10 am