The US Consumer Price Index (CPI) climbed 7.9 per cent in February of this year, the highest it has been since June 1982.

Inflation continues to beset the US as a result of the impact of COVID on the economy. It has been exacerbated by the war in Ukraine, rising oil prices and supply chain bottlenecks.

The CPI jumped by 0.8 per cent in February ( from January’s figure) to just under eight per cent from where it was for the same period in 2021.

COSTS ON PUTIN MORE DEVASTATING

Commenting on this latest blow to the US economy, President Joe Biden said: “A large contributor to inflation this month was an increase in gas and energy prices as markets reacted to Putin’s aggressive actions.

“As I have said from the start, there will be costs at home as we impose crippling sanctions in response to Putin’s unprovoked war but Americans can know this: the costs we are imposing on Putin and his cronies are far more devastating than the costs we are facing.”

Groceries are up 8.6 per cent from last year and energy has rocketed by 26 per cent. Stripping away food and energy (core inflation), prices are up by 6.4 per cent, the biggest increase in forty years.

Gas prices at the pump are now at a whopping US$4.32 a gallon.

“The numbers are eye-watering and there is more to come. The peak in inflation will be much higher than previously thought and will arrive later than previously expected,” said Eric Winograd, senior economist at asset management company, AllianceBernstein.

Michael Gapen, chief US economist at Barclays PLC, added: “This sets the stage for where we are now. And we need to see how long this conflict (Ukraine) plays out and how disruptive the sanctions regime actually is.”