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Inflation Soars to 7.9 % Annual Rate, the Highest in 40 Years

Inflación se dispara

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Inflation soars to 7.9 % annually, marking the highest price rise seen since January 1982, 40 years ago, when annual inflation adjusted 8.4 %. Russia’s invasion of Ukraine has caused commodity prices, especially oil prices, to skyrocket, resulting in a price increase on top of Russia’s pre-war inflation.

During the month of February alone, the price of petroleum fuel rose by 7.7% according to data from the Bureau of Labor Statistics (BLS). The price of gasoline increased by 6.6% and the cost of energy by 7.7%.

From February 2021 to the present, the price of energy has increased by 25 %. During the months of November and December last year, and January 2022, fuel prices had reduced their growth and even in some items a small reduction was observed. However, with the crisis in Ukraine and the sanctions to Russia, crude oil prices have spiked, and today the precious hydrocarbon is quoted at $135 per barrel.

Excluding volatile energy costs, inflation stands at 6.4 %, which is still high for a country that before the pandemic was accustomed to an inflation rate of no more than 2 % per year.

Developing news.

Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica

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