Inflation in the U.S. for January was 7.5%, but it peaked higher in February at 7.9% year-over-year, meaning the ‘average’ basket of consumption items for households went up nearly 8% in price since February 2021.
The figure shows that inflation is not slowing down and that the cost of living is increasing dramatically, potentially forecasting recessionary times or debt crises to come.
The price of food at home (groceries) increased 8.6% from last year while food away from home (restaurants) increased 6.8%.
Energy marked the highest spike with a 25.6% price increase, as gasoline increased 38% from last year. Energy services increased by 12.3%. Utility gas service increased 23.8% in price, showing overall energy costs climbed to largely unprecedented numbers.
Used cars and trucks also increased by a notable 41.2%, rendering the overall cost of transportation much higher than just a year ago.
The figures released today show inflation is not slowing down. March inflation is likely to be even higher, as it will take into factor the increase in energy prices caused by the Ukraine-Russia conflict.
Inflation is often described as a hidden tax, meaning it impedes consumer spending by making goods, often necessary ones, more expensive.
When goods increase nearly 8% in a year and up to 25% for certain key categories such as energy, workers’ wages never increase to match these inflation figures, meaning consumers end up with less buying power overall.
