Inflation grew highest in February in US and price pressures became more engrained.
The consumer price index increased 7.9% over the last 12 months, a fresh 40-year high record as per the Labor Department’s Bureau of Labor Statistics.
The February increase in inflation is at the fastest speed since January1982 when US economy faced the combine threat of higher inflation and declined economic growth.
The CPI gain was 0.8% On a month-over-month basis.
Food prices increased 1% recording the fastest monthly gain since April 2020.
Energy prices increased 3.5% for February accounting for almost one-third of the headline inflation increase. Shelter costs increased 0.5% on monthly basis and 4.7% for a 12-month rise recording the fastest yearly increase since May 1991.
Excluding volatile food and energy prices, core inflation increased 6.4%, as anticipated which is the highest gain since August 1982.
An increase in inflation meant the value of fix paychecks of workers decreased further.