Inflation grew worse in February amid the escalating crisis in Ukraine and price pressures that became more entrenched. The consumer price index, which measures a wide-ranging basket of goods and services, increased 7.9% over the past 12 months, a fresh 40-year high for the closely followed gauge, according to the Labor Department’s Bureau of Labor Statistics.
The February acceleration was the fastest pace since January 1982, back when the U.S. economy confronted the twin threat of higher inflation and reduced economic growth. On a month-over-month basis, the CPI gain was 0.8%.
Economists surveyed by Dow Jones had expected headline inflation to increase 7.8% for the year and 0.7% for the month. Food prices rose 1% and food at home jumped 1.4%, both the fastest monthly gains since April 2020, in the early days of the Covid-19 pandemic.
The bad news is the world’s food prices are about to get even higher. In response to the ongoing Russian invasion, Ukraine has banned the export of various food items from its country. These items include wheat and oats, which are expected to have a significant impact on food supplies across Europe, Africa, and Asia.
Ukraine has banned the export of wheat, grain, and other food items. (Stock) Ukraine’s minister of agrarian and food policy Roman Leshchenko explained that the decision was made as part of the country’s efforts to keep its own civilians fed during the crisis, Reuters reports.
As Russian forces slowly move across the country, normal supply lines are being cut off from various areas. Ukraine is often referred to as the breadbasket of the world and the halt of its wheat and grain exports could threaten the food supply across Europe and other regions
