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.