The headline inflation (Consumer Price Index-CPI) has increased to 7.9% in February, this year, the Labor Department announced today. The data again marked at 40 years (highest since 1982) high range; the fuel prices and commodity prices are sky-rocketing in the country. The January CPI inflation data was 7.5% (YoY).
The latest data said that prices gained 0.5% from the earlier month, and 6.4% from the last year. Additionally, in February, the retail price of regular-grade gasoline gained 19.3% to $4.32 a gallon, American Automobile Association data showed. On the other hand, food prices jumped up 1% (MoM), and goods inflation has gained by 13%, which is the highest since 1980. the gold prices and crude oil prices are expected to increase further due to this rising inflation now. Today after the data got published gold prices reached $2010/oz.
US Federal Reserve, the country's central bank has been trying to keep the inflation rate under control for a very long time, they were trying to keep the CPI data at 2% but failed miserably.
The inflation rates were mostly driven by the crude oil price in the recent period. Earlier, IBA President Timothy Bowler, a former US Treasury official told Reuters, "If that number keeps going up those that are setting monetary policy will start to notice higher trend inflation expectations getting priced into the system, and that might impact decision-making."
The CPI inflation data at the present moment is far above the target, hence the US Fed might raise the interest rate soon. In the policy meeting which will be organized in the next week, the Fed can decide about it.
In March, the commodity markets are booming and oil and gold rates are touching the sky due to the Russia-Ukraine geopolitical uncertainties. Russia is invading Ukraine anticipating, the country is building liaison with the western countries. So, the March 2022 COI inflation is expected to be much higher than February.