The rise in prices of crude oil and rent has the U.S inflation figures for the month of February jump ticks unexpectedly. This emphasizes the challenge of taming price pressures within the economy.
According to the U.S Labor Department today, Tuesday, the consumer price index, which measures broadly the price of everyday goods including gasoline, groceries and rent, rose 0.4% in February from the previous month. Prices ticked 3.2% from the same time last year.
These figures came in higher than the January recorded 0.3% monthly increase and 3.1% headline gain. Core prices index excludes the more volatile measurements of food and energy, climbed 0.4%, as they did in January. It however, rose 3.8% annually. Those figures are slightly higher than estimates.
This signifies through other parts of these figures that the inflation rates keeps getting overwhelming. Altogether, the report indicates that while inflation has fallen considerably from a peak of 9.1%, it remains above the Federal Reserve’s 2% target.
The ongoing inflation experience has however, created severe financial pressures for most U.S. households, many of whom are forced to pay more for everyday necessities like food and rent.
The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.
Food prices have consistently been increasing so also the cost of fuel which had topped to 3,8% since February. Rents have also been up by 0.4% for last month and also 5.8% high from March last year. This is a ripple effect of the rising cost of housing which also affects household budgets.