The February consumer price index was another indicator that inflation in the United States went out of control. Compared to the same month last year, prices rose 7.9%, the largest year-over-year increase since January 1982. One notable difference is that during the two periods, the United States was in recession at the time. There are concerns that current inflationary pressures could cause a recession later this year.
According to a recent announcement by the Bureau of Labor Statistics, prices for many household items have risen sharply, gas prices and energy are most prominent, and fuel oil prices have skyrocketed. These numbers were pushed up prior to the rise in gasoline prices in March. The price per gallon is at the highest level ever. Therefore, the March CPI could be even higher ( States with the fastest rising gas prices.. )
The cost of many foods has also risen, and new and used car prices have risen by double digits. This is due to a shortage of new cars to use them due to a shortage of chips. This shortage is not expected to improve until later. This year. In summary, BLS experts said: “The increase in petrol, shelter, and food indices was the largest contributor to the increase in all seasonally adjusted items.”
Soaring prices raise some policy issues. The first is the pace at which the Fed will raise rates to mitigate inflation. The Fed raised rates by 0.5 percentage points this month and is expected to raise rates three more times this year. .. But as inflation accelerates, there is debate about whether these rates should be raised more often in 2022, or in larger steps, and perhaps up to 1% at any time.
Some experts believe that rising inflation is behind us. The Wall Street Journal “March should peak,” he believes, as oil prices will soon fall and supply constraints will be eased. One of America’s most prominent economists and the former Treasury Secretary disagree. Inflation seems to have hit every part of life.Here 25 museums with the highest ticket prices.. )
There is little reason to believe that oil prices will fall based on the current geopolitical situation that triggered the ban on the purchase of Russian crude oil. Car prices will almost certainly not be eased. Supply chain issues added to the cost of some items do not appear and are ready to be resolved immediately. Also, the prices of certain meats and grains have risen for over a year, suggesting long-term problems. February numbers may not be the worst this year.
24/7 Wall St. reviewed BLS’s recent CPI release and listed household items whose prices increased by more than 10% in February 2022 compared to February 2021.
Click here to see the prices of household items soaring