US inflation hits 40-year high, rising 7.9 per cent in February

Gasoline prices were the biggest contributor to the Consumer Price Index Increase

(Getty Images)

Inflation hit another 40-year high as the Consumer Price Index jumped 7.9 per cent in the past year, the Bureau of Labor Statistics reported on Thursday.

Increases for food, gasoline and shelter contributed the most to inflation, with gas prices increasing 6.6 per cent and accounted for nearly a third of the all items monthly increase.

The numbers come as gas prices are expected to increase given Russia’s war in Ukraine and the Biden administration’s decision to ban oil imports from the country amid Vladimir Putin’s assault.

The index for food increased 1.0 per cent while the food at home index increased 1.4 per cent, with both being the biggest increase since April 2020.

President Joe Biden released a statement touting the economic recovery but also faulted the Russian president’s attack on Ukraine for increased gas prices.

“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,” he said. He pointed to his coordination with American allies to unleash 60 million barrels of oil from strategic reserves.

“My Administration is pushing for investments so we can manufacture more in America, strengthen our supply chains, and move goods to market at lower cost,” he said. “I’m promoting competition to make sure big corporations are offering consumers fair prices, and I’m pressing Congress to pass my plan to lower the cost of essentials like prescription drugs and energy.”

Polls have consistently shown American voters care most about inflation and rising prices. The Republican National Committee released a statement faulting the Biden administration for the price increases.

““Prices continue to skyrocket under Biden and Democrats’ reckless policies,” chairwoman Ronna McDaniel said. “Biden’s attempt to deflect blame is an insult to every American and small business owner struggling to afford the cost of everyday goods.”

The news comes despite the fact the United States added 678,000 jobs in February and wages jumped 5.1 per cent.