Annual inflation hit a new four-decade high in February — even before Russian troops invaded Ukraine — causing the prices Americans pay at the gas pumps to skyrocket.
Prices increased 7.9 percent over the past 12 months, the sharpest uptick since 1982 and a likely sign of even higher prices to come. The elevated cost of things like food and rent all contributed to the increase, according to the Bureau of Labor Statistics. The increase report from the Labor Department doesn’t cover the even more recent spike in gasoline prices, which have hit a historic high following Russia’s invasion of Ukraine.
Since Russia’s invasion, average gas prices across the US have increased about 62 cents a gallon to $4.32, according to AAA.
In some areas like Las Angeles, where gas prices hit $7 a gallon this week, the cost at the pump has caused a significant strain on wallets and households. Inflation will likely continue to pick up even more as the war in Ukraine sends prices of gasoline and other goods sky rocketing.
From January to February, nearly every category of goods and services became more expensive. Gas jumped 6.6 percent, accounting for almost a third of price hikes. Food costs jumped 1.4 percent, the largest one-month increase since 1990, excluding a pandemic-induced price surge two years ago.
Fruits and vegetables became pricier too, rising 2.3 percent, the largest monthly jump since 2010.
Rapidly increasing prices have hit most Americans hard, especially low-income households, where necessities like food, gas and rent have become much more difficult to afford. The disparaging situation has become a political threat to the White House, with midterm elections fast approaching in November, and sanctions in response to Russia’s war in Ukraine likely to keep inflation and gas prices high.
The Biden Administration has blamed much of the inflation surge on corporate giants dominating industries where, if there were smaller businesses there would be lower prices. One example of this is meat prices, which the administration says would be lower if there were more than four meat packing firms in the industry.
In his State of the Union address last week, President Joe Biden said he believes the US should manufacture more goods at home, rather than relying on products from overseas. His proposal would avoid supply chain shortfalls, but would take time, and wouldn’t reduce inflation anytime soon.
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