Rising fuel and food costs push US inflation to 7.9%

That is the biggest year-on-year leap since 1982 and up from the 7.5% rate reported in January. Rising costs for energy, food and shelter drove the gains, which are squeezing household incomes. President Joe Biden and central bank officials are under pressure to rein in the increases, which have proven more persistent than many expected.

The Federal Reserve – the US central bank – is widely expected to raise interest rates at its meeting this month. In the UK – where inflation hit 5.5% in January – the Bank of England has already increased rates, while the European Central Bank on Thursday said it would wind down some of its pandemic-era stimulus sooner than expected in response to the price pressures.

The war in Ukraine has added to the problems, driving a global surge in energy prices as the West and allies shun oil from Russia – typically responsible for about 7% of global supply. Energy prices in the US jumped 3.5% in February, driven by a 6.6% leap in gasoline prices, according to the Labor Department’s monthly report on consumer prices.

News Reporter