US inflation hit a new four-decade record-high of 7.9% in February, as Russia’s invasion of Ukraine drove energy prices even higher.
- Year-over-year core CPI, excluding volatile food and energy prices, rose to 6.41% from 6.02% in the prior month and still above the Fed’s 2% PCE target.
- The largest contributors to the increase in consumer prices were gasoline, shelter, and goods. The gasoline index increased by 6.6% in February, accounting for nearly 30% of all items monthly increases.
- The index for all items less food and energy increased slightly by 0.5% in February after a 0.6% increase the previous month.
Before Russia’s invasion, policymakers were optimistic for a peak in year-over-year inflation this spring as supply chains constraints eased from the pandemic-driven disruptions.
DXY up +0.18%, EUR USD down -0.27%
Source: US Bureau of Labor Statistics