Consumer inflation in the U.S has skyrocketed to a whopping 7.9%, recording the highest spike since 1982 due to the surging costs for housing, food, and gas. Business analysts believe that the prices of commodities and the inflation percentage might also increase dramatically.
Labor Department reported the increase on Thursday even though they never included the gas and oil price following Russia’s invasion of Ukraine on February 24. Following the attack on Ukraine, gas prices increased “62 cents a gallon to $4.32,” according to a report by AAA.
“The numbers are eye-watering, and there is more to come,” said Eric Winograd. “The peak in inflation will be much higher than previously thought and will arrive later than previously expected.”
However, it is not entirely true that the war in Ukraine is the main reason for inflation. Before the war, the country was experiencing inflation, but the war propelled inflation to a greater number.
According to the government’s report, “from January to February, inflation rose 0.8%, up from a 0.6% increase from December to January. Excluding the volatile food and energy categories, so-called core prices rose a sharp 0.5% month to month and 6.4% from a year earlier.”
Inflation has made life hard for some residents because their salary does not match the increased food, rent, and gas. Inflation is now the top political challenge for Joe Biden and his supporters as the next elections are nearing.
Republicans argue that the Biden administration failed following the increased commodities prices. According to surveys conducted, small ventures claim that inflation is their major economic concern.
Gas prices in the U.S increased again this week after they barred importing oil from Russia. In their defense, Biden’s administration claims that meat prices are high and steadily rising because only “four meat-packing” companies control the meat franchise in the country.