Propelled by soaring costs for gas, food and housing, consumption inflation in the United States jumped 7.9% over the past yearthe sharpest spike since 1982 and probably only one harbinger of same higher upcoming price.
The increase reported by the Labor Department on Thursday reflects the 12 months ending in February and did not include most of oil and gas price increases that followed Russia invasion of Ukraine on February 24. Since then, average gas prices nationwide have jumped about 62 cents a gallon to $4.32, according to AAA.
Even before the war escalates again price increases, robust consumer spending, solid wage increases and persistent supply shortages had sent US consumer inflation to son highest level in four decades. What more housing costs, which make up about a third of consumer government price the index, have risen sharply, a trend that should not be reversed at any time soon.
Thursday’s government report also showed that inflation increased by 0.8% from January to February, up the 0.6% increase from December to January.
