US inflation hits 40-year high as oil prices rise
Energy prices rose 3.5% in February, contributing to one-third of the inflation growth
• Energy prices rose 3.5% in February, contributing to one-third of the inflation growth
• Household net worth jumped 8.2% in the fourth quarter of 2021 to $150.29 trillion
U.S. consumer price gains jumped the worse in February to a 40-year high bolstered by rising gas and food prices, with prices are expected to increase even further following Russia’s invasion of Ukraine.
The consumer price index (CPI), which measures the costs of wide-ranging goods and services, increased 7.9% annually, the Labor Department’s data showed on Thursday.
The inflation gauge rose 0.8% in February from the previous month, which recorded a CPI of 7.5%.
The February acceleration was the fastest pace since January 1982, when the U.S. economy faced a recession with higher inflation and reduced economic growth.
Ballooning food and energy prices
Energy prices rose 3.5% in February and accounting for about one-third of the headline gain. Food at home prices jumped 1.4%, the fastest monthly gains since early the COVID-19 days in April 2020.
Food prices alone jumped 1%.
Excluding the super volatile food and energy prices, the core inflation rose 6.4%, in line with estimates and the highest since August 1982.
Household holdings jumped
Moreover, the Federal Reserve on Thursday reported that Americans got considerably richer in 2021, mainly due to a boost from their U.S. stock market holdings and an increase in real estate values.
Household net worth jumped 8.2% in the fourth quarter from the previous one to $150.29 trillion for the first time.
The growth is also the fastest since the first quarter of 2020, thanks to a combined $4 trillion increase in stocks and real estate holdings.
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The boost came with U.S. economic growth running fastest since 1984 and the stock market enjoying another robust year.
The move came despite a rapid increase in debt at all levels.
