US inflation is set to heat up further leaving experts doubts that U.S. consumers may have experience relief from sky-rocketing inflation following the surge in gasoline prices last week.
According to the reports, the gasoline price surged by most in nearly 17 years, costing other goods to mark higher as well.
Prior to the invasion in February, the data for the US inflation report was released, showing the surge in prices at their fastest pace in 40 years.
Experts believed that data to be released on Thursday, will likely “show only a preliminary impact from the swelling in U.S. oil prices, which briefly climbed above $130 a barrel on Monday, but the spike is expected to drive overall inflation higher in coming months.”
Moreover, experts believed that February “would be the high point for year-over-year headline inflation.” However, following the crisis involving Ukraine and Russia, the event is already sending gas prices higher in March.
Furthermore, the Biden administration was also slammed for soaring costs for “rents, electricity and food” while the economy grappled with the impact of the COVID-19 pandemic.
According to Fed Chair Jerome Powell, “the central bank will act cautiously given the uncertainty of the impact of the war in Ukraine, but persistently high inflation will weigh as policymakers sketch out their forecasts at their meeting for the path of rate hikes in the months ahead.”
Economists also polled revealed in their forecast that the “Consumer Price Index has climbed 7.9% on a year-on-year basis in February, up from 7.5% in January. The monthly rate is forecast to have risen 0.8% after increasing 0.6% in the prior month.”
Bigger impact is also expected to come as Gasoline prices increased nearly 6% in February, which would add around 0.2 percentage point to the headline number last month.
