Inflation Soars to 40-Year High as Energy Prices Surge

Source: Bureau of Labor Statistics

US inflation accelerated to its highest level in nearly four decades in February, driven mainly by the surge in energy prices during the month.

• Annual inflation clocked in at 7.9% in February, the fastest level since January 1982.
• Core inflation stood at 6.4%, the highest since August 1982, with the energy index up 25.6% and the food index up to a 40-year high of 7.9%.
• The gasoline index jumped 38.0%, the fuel oil index up 43.6%, and energy services up 12.3%. Used cars and trucks also surged by 41.2%.
• All major energy component indexes recorded increases for the month, with natural gas up 1.5% and electricity prices posting a sharp increase.
• Compared with the previous month, inflation in February was 0.8%, up from 0.6% in both January 2022 and December 2021.