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By Malvika Gurung
Investing.com — The US Labor Department reported on Thursday that the country’s consumer price index (CPI) inflation has jumped to its highest in 40 years.
Over the past 12 months ending February 2022, the inflation has shot up 7.9%, its steepest spike since 1982, led by escalating prices of housing, food and gas.
The recorded figure does not include most of the surged oil and commodity prices, led by the aggravated Russia-Ukraine crisis, late in February.
Analysts peg the upcoming month(s) to record high levels of inflation reading, as these heightened prices would be incorporated then.
On a month-over-month basis, the CPI grew 0.8%, compared to a 0.6% rise from December to January.
The accelerated pace of inflation spike in February has stoked fears of the US Fed aggressively tightening the monetary policy, with a key interest rate hike at the conclusion of next week’s meeting, to put a leash on soaring inflation.
As a result, the domestic market opened in red on Friday, tracking weak global cues. At 10:30 am, benchmark equity indices was trading 0.07% lower and 18.2 points or 0.03% lower, widely paring opening losses.
Inflation has roared higher amid an unprecedented government spending blitz coupled with persistent supply chain disruptions that have been unable to keep up with stimulus-fueled demand, particularly for goods over services, stated a CNBC report.
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