Causes.com
| 3.11.22

Inflation Accelerated to a New 40-Year High of 7.9% in February

How do you feel about the rise in consumer prices?

What’s the story?

  • The Bureau of Labor Statistics reported Thursday that the all items consumer price index rose by 7.9% over the last 12 months through February. That’s the highest rate of inflation since a comparable period ending in February 1982 and nearly four times the Federal Reserve’s target rate of 2%.
  • Month-to-month consumer prices rose by 0.8% in February on a seasonally adjusted basis. That’s an acceleration from the 0.6% rate measured in January and the highest monthly increase since a 0.8% was measured in November.
  • Given that Russia’s invasion of Ukraine began at the end of February, its impact on inflation data from last month is small.

What goods did prices increase the most for?

  • Here’s a rundown of the common items which have seen the largest price increases due to inflation year-over-year (notable monthly changes in parentheses):
  • Fuel oil increased 43.6% over the last 12 months (including a 7.7% increase from January).
  • Used cars and trucks increased 41.2%.
  • Gasoline of all types increased 38% (including a 5.4% increase from January).
  • Lodging away from home increased 25.1%.
  • Utility gas service (piped) increased 23.8%.
  • Propane, kerosene, and firewood increased 19.1%.
  • Furniture and bedding increased 17.1%.
  • Citrus fruits increased 16.2%.
  • Beef and veal increased 16.2%.
  • Pork increased 14%.
  • Chicken increased 13.2%.
  • Infants’ and toddlers’ apparel increased 12.4%.
  • New vehicles increased 12.4%.
  • Milk increased 11.2%.
  • Fresh fruits increased 10.6%.
  • Tools, hardware, outdoor equipment, and supplies increased 10.6%.
  • Coffee increased 10.5%.
  • Fish and seafood increased 10.4%.
  • Financial services increased 9.1%.
  • Electricity increased 9%.
  • Men’s apparel increased 8.6%.
  • Frozen fruits and vegetables increased 8.3%.
  • Cereals and bakery products increased 7.8%.
  • Women’s apparel increased 6%.

What is inflation and how is it measured?

  • Inflation is a measure of the decline of purchasing power for a given currency over time, which in the U.S. means that a dollar effectively buys less than it did in prior periods because prices rise.
  • The most common way inflation is measured is through the Consumer Price Index for Urban Consumers (CPI-U), which shows changes in prices paid for a “representative basket of goods and services” by an urban consumer group representing about 93% of the U.S. population.
  • CPI-U includes food, energy, commodities like cars and clothes, plus services such as rent and healthcare; and the relative importance of each to the overall basket shifts according to its proportion of all spending in a given month. This overall number is known as “headline” CPI, although economists also track a metric called “core” CPI which excludes food and energy because those categories tend to have more volatility.
  • The Federal Reserve aims to keep inflation at about 2% as part of its dual mandate of promoting stable prices and full employment, as a modest amount of inflation is viewed as an optimum policy in terms of encouraging consumer spending without penalizing savings and investment. When inflation starts to get out of control, the Fed raises interest rates to encourage more savings and less consumer spending.


— Eric Revell

(Photo Credit: iStock.com / sefa ozel)

  • 41.9k
    jimK
    03/13/2022

    The current jump on inflation comes on top of the inflation already occurring due to pent up demand and the pandemic supply line disease - which was unprepared and unwilling to risk rebuilding itself until it was assured that their was enough demand to warrant the expense. There has also been profiteering by the industry giants trying to recoup pandemic losses and expand their profit margins. They have the unique positions affecting economies of scale by raising prices without fear of the competitive pressures that are ‘supposed’ to protect capitalistic markets from price gouging. They are turning in record profits because they have an excuse to do so as well as the incredibly lax regulations they purchased from the Republican Cartel. … … … On top of these pressures, Putin’s war and the geopolitical financial pressures put on him as the least dangerous way to pressure him to stop killing innocents, is bringing a new level of uncertainty to global finances. It will be this way until the situation in Ukraine is resolved. Financial instability and uncertainty causes pretty much everyone in the supply lines to raise prices to cover the added risks. … … … Putin and the people aiding and abetting his territorial expansionism are the root cause of the current jump in inflation. The Republican Cartel’s early support of Putin’s propaganda claims and the continued support of the FOX entertainment news channel for political advantage are contributing to escalating financial risks which is the reason for the current inflation. … … … The nimrod turncoat traitor, Tucker Carlson - a leading supporter of the Putin and whose commentaries are featured on Russian state TV, should have the FOX news corporation sued for at least a third the world wide costs of this manufactured inflation.

  • 40
    Linda
    Voted Sad
    04/08/2022

    There has got to be something done about the rising costs of basic necessities. Groceries, gas, medication. Everything has gone up except the paycheck. It seems that no matter what it is, there is an excuse. How about cutting the excuses as find ways to lower the cost of everything?

  • 467
    Cj97603
    Voted Sad
    04/07/2022

    We know inflation is caused by Democratic Donors like Larry Fink. We the people of poverty suffer while you corrupt Democratic and Corrupt Republican Politicians make millions. We are tired. The donor to this Democratic Party Propaganda Tool is Larry Fink. The Whitehouse chief economic advisor is Brian Deese,  his employee.

     

    JimK is a allegedly a paid commentor with algorithm help to get his opinions in top spot.

  • 21
    Cynthia
    04/03/2022

    The US economy wouldn’t be like this if the rich paid their fair share of taxes. Which part of rich people getting richer off the backs of the status quo is okay? The rich and entitled pay less or nothing at all while the rest of the 99% wonder if they’ll make it through the week. It’s disgusting.

  • 142
    Steven
    03/20/2022

    Why hasn’t the federal government frozen fuel prices at say $1.75 or something like that? Seems it would be a great way to get votes and put the spurs to the economy in general? It would also leave the oil companies with plenty, yes plenty of profit margin. I would like to say Rest In Peace to our Alaska federal representative, senior Don Young, and my condolences to his family.

  • 1,219
    Dennis
    03/19/2022

    Inbred Democrat policy's.

  • 806
    Billy
    03/17/2022

    I guess we all got what was voted for

  • 221
    Susan
    03/16/2022

    Trying to make it on Social Security is depressing.

  • 40
    kris
    03/16/2022

    Oil is 100$ a barrel but pump prices are higher than ever, get these companies in check or admit you are beholden to them. Beholden to them is not an acceptable option.

  • 2,215
    wpeckham
    03/15/2022

    While I hate it, I recognize that there is no action Congress can take to reduce the impact. The conservative members will block all such actions so that they can blame Liberals for the damage in the hope that this will result in a GOP win during the next couple of elections. Just as they have for the last year.

  • 1,380
    Reilly
    03/15/2022

    How about we vacuum 6 trillion more dollars into the economy and see what happens. I know what will happen! Inflation will go up. It's simple economics, people. Too much money chasing too few goods. And the American people know who is doing this. We all have eyes and a brain. Biden can't pull the wool over my eyes. Welcome to the economics of the 1970s, fellow citizens.

  • 118
    Joel
    03/14/2022

    Ain't seen nothing yet. The attempt to foist blame squarely on business and republicans is illusionary and politically deceptive. The right is not without blame but the downward spiral began with the policies of the current administration that has forced the business communities hand. Keep in mind that not all "greedy" business is on the right. From this point, the action of Putin will be a huge factor in the rise of future inflation. The left will deceptively transfer all their culpability onto him for political gain. The whimpish west is an emasculated threat to the bear who won't ask for permission. After the destruction of Ukraine and Moldova Putin's attention must turn to the middle east whereas his major allies reside. There is much strategic booty there to be gained. Oh yes, the you ain't seen nothing yet part. China this year may get into the act. Realizing that we are hampered with the giggles, Taiwan is theirs for the taking. They have a great advantage before the midterms, when hopefully we restore an assemblage of command. Inflation, coming to a neighborhood near you. Cinch your belts.

  • 2,580
    NoHedges
    03/13/2022

    The fact we are about to see a rise in the same economic meltdown as what gave birth to Gen X childhoods should alone give every American who makes less than 300K and is not heavily invested in the stock market pause. The facts are clear, the 50 years rise of Corporate America and their control over our government has led to the destruction of every New Deal reform that once protected Americans. We can either continue our socialism of the rich on the backs of our children, or turn towards New Deal policies to protect children, the homeless, those with disabilities, and vulnerable seniors. We are either a nation of and for the people, or a nation of and for an American oligarchy. We can either learn from Russia’s leadership failure, or we can follow in the policy footsteps of the Russian oligarchs. Corporate America will not listen, nor will they suddenly become more compassionate, ethical, or empathetic. It is up to every American to decide which future they want their legacy reflect. We do not have to concede to a rematch of octogenarian leadership in 2024. A vote for many of us that was a forced choice between ignoring decades of promises of change and a patriotic call to save our nation. We do not have to continue to be held hostage by the corruption and the marginalization of capitalism. We can… Use our primary vote: To vote strategically To vote for change To signal that that status quo and bare minimum are no longer acceptable leadership models.

  • 99
    Karen
    03/14/2022

    I’m concerned as far as the price of necessities like gas. Though Californians have been paying $4 to $5 dollars for gas for YEARS while others have not. It’s a good time to reassess all the over-spending ‘til supply/demand re-balances.

  • 7,925
    DaveS
    03/13/2022

    This is supply and demand issue or Gouging, greed, monopoly and political Manipulation by corporations. The federal government does not have the control over the private market other the laws on the books. Which are written by lobbyists! In April 1, 2020 there was a price war between Russia and Saudi Arabia a 30 year low for fuel. Trump called on Russia and Saudi Arabia to cut oil production and form a pack to jack up prices. Now the Saudi snub US and stick to the Russian pact that Trump had put in place, which also falls under antitrust law. You can thank Trump for the high gas prices, plus the oil companies, also the Russia invasion of Ukraine. Corona virus was a major problem that created shortages as well

  • 26.1k
    Frank_001
    03/12/2022

    The New Axis With Putin embracing the Star of the American Right, Tucker Carlson, the realignment of the Right with totalitarianism is now complete. All Hail Putin, Trump, Guns and Jesus, right gang? Holy Smokes! Vote Blue in November! Check your registration status. Check your local voting regulations! @davidf wrote: "Not totally off topic: Russian State Television is now presenting Tucker Carlson as one of their cohosts, rebroadcasting his shows with Russian subtitles." Read more here: https://www.causes.com/comments/1524319

  • 741
    John
    03/12/2022

    While everybody’s worried about inflation how about taking a look at things like this, you the tax payer currently pay $2 million a month for security for Mike Pompeo! That’s right $2 million every month $24 million a year to protect Former Secretary of State Mike Pompeo. It’s bullshit he’s not even in government anymore. 24 million who the hell is coming after Mike Pompeo for $24 million a year. It’s a boondoggle waste of Our money. I don’t want a dime of my tax money going to protect that idiot. He’s being protected with 24 million per year while by millions can’t even afford health insurance.

  • 1,479
    Bonn77
    03/12/2022

    Not the first time we e been here as a nation. But that said there is too much price gouging. Also as I’ve mentioned before, corporations have gone to just in time inventory which makes a slow down in the supply chain look like supply and demand are off. Now these same corporations can raise prices. And let’s face it the majority of this has to do with oil production. But wouldn’t we rather have inflation than send our sons off to WW 3? The Allies need to work together to stabilize oil prices and work with corporations to control price gouging. I read recently that we were almost ready to reinstate a treaty with Iran which would also aid in the easement of oil requirements, but Russia but a wrench in the deal. It’s time we rethink some of these global partnerships with unstable nations. Let’s use free resources for the sun, wind and water, it’s a no-brainer!

  • 26.1k
    Frank_001
    03/12/2022

    ...and propaganda put out by the Right is still misinformation and outright lies. Citing a Facebook post, as a source of reliable information, @targeted, really? Oh boy! Let us find the serenity to accept the things we cannot change, The Courage to change the things we can, and The Wisdom to know the difference. @targeted wrote: "RIGHT HERE!!! I know the Left won’t acknowledge this and claim it is Republican lies. But facts are facts! Read more here: https://www.causes.com/comments/1524273

  • 20.1k
    Kristen
    03/12/2022

    Reading the responses posted by the super-unhappy Fux-watching cheerleaders of former guy. It’s gonna be fun addressing the likes of you IRL when former guy is indicted. You fucking traitors think nothing’s gonna change, for YOU. This country will pick a side and guess what, Republicans? You’re on the wrong one. And you will be treated like Hitler’s obedient German scumbags and we will assume you’re thoroughly untrustworthy like the Vichy French. Because you are thoroughly unworthy of trust, respect, or authority over ANYTHING. Because you are all Vichy Americans. All you idiots still defending your shitty fascist party, or former guy, or Fux Nooz, or Putin: you can all fuck ALL the way off. And good luck in the midterms! #DemocracyWins