With the rise in costs for food, fuel, and housing, inflation surged by 7.9% over the past year, marking the highest increase since 1982 and is likely to be the beginning of more expensive costs, a report said.
The jump reported last Thursday by the Labor Department reflected the 12 months that ended in February. It did not reflect the price spikes of gas and oil resulting from Russia’s invasion of Ukraine on February 24. Since then, gasoline prices across the country have risen approximately 62 cents per gallon to $4.32 as per AAA.
Before the war, increased prices, robust consumer spending, pay increases, and ongoing supply shortages sent U.S. inflation to its highest point in four decades. Furthermore, the costs of housing that make up around a third of the government’s Consumer Price Index have increased dramatically, a trend that’s unlikely to change anytime soon.
The report released by the government on Thursday revealed that from January through February, inflation climbed 0.8%, up from a 0.6% increase from December until January. Except for volatile energy and food categories, the so-called core price increased by a dramatic 0.5% month to month and 6.4% from the previous year. Economics experts tend to keep track of the core prices since they better reflect long-term inflation trends.
For most Americans, the inflation rate is well ahead of the pay increases that many received last year, making it more challenging to pay for essentials like food, gas, and rent.
In an effort to curb the increase in inflation, Federal Reserve is set to increase interest rates several times over the course of the year, starting with a quarter-point increase this week.
This story originally appeared on the Associated Press News.
