The February consumer price index came out yesterday. Over the last few months, the inflation rates have been raising and this month is no different. Last month we hit another 40 year high at 7.9% according to the bureau of statistics.
The 112-month increase is now the largest since January 1982 and for the last few months, we keep hitting these record highs.
Overall when comparing food prices in 2021 to now February 2022:
- Food up 7.9%,
- Shelter up 4.7%,
- Energy/up 38%,
- Electricity and 32.8%
The inflation data is not seasonally adjusted.
Gas prices were already high because of inflation, COVID-19, supply problems and now with the Russian aggression, things are likely to get worse.
When the consumer price index comes out next month we will be able to see what impact the Russian sanctions have on the United States. Economists are expecting the number to be higher than it was in February.
Economists say one way this issue could be solved is by the Federal Reserve raising interest rates to lower the money in circulation in the economy. The Federal Reserve is expected to meet next week where they are expected to approve interest rate spikes.
If the Federal Reserve raises interest rates to much it could impact the economic recovery but if they do not raise them enough it may cause inflation to keep going up.
Economists say it’s a real delicate balance the fed chair is responsible for figuring out.
