Russia Ukraine War: Key inflation gauge hit 6.1% in January, highest since 1982

International

oi-Madhuri Adnal

Washington,
Feb
25:
An
inflation
gauge
that
is
closely
monitored
by
the
Federal
Reserve
jumped
6.1%
in
January
compared
with
a
year
ago,
the
latest
evidence
that
Americans
are
enduring
sharp
price
increases
that
will
likely
worsen
after
Russia’s
invasion
of
Ukraine.

The
figure
reported
Friday
by
the
Commerce
Department
was
the
largest
year-over-year
rise
since
1982.
Robust
consumer
spending
has
combined
with
widespread
product
and
worker
shortages
to
create
the
highest
inflation
in
four
decades
–
a
heavy
burden
for
US
households,
especially
lower-income
families
faced
with
elevated
costs
for
food,
fuel
and
rent.

At
the
same
time,
consumers
as
a
whole
largely
shrugged
off
the
higher
prices
last
month
and
boosted
their
spending
2.1%
from
December
to
January,
Friday’s
report
said,
an
encouraging
sign
for
the
economy
and
the
job
market.

That
was
a
sharp
improvement
from
December,
when
spending
fell.
Americans
across
the
income
scale
have
been
receiving
pay
raises
and
have
amassed
more
savings
than
they
had
before
the
pandemic
struck
two
years
ago.
That
expanded
pool
of
savings
provides
fuel
for
future
spending.

Inflation,
though,
is
expected
to
remain
high
and
perhaps
accelerate
in
the
coming
months,
especially
with
Russia’s
invasion
likely
disrupting
oil
and
gas
exports.
The
costs
of
other
commodities
that
are
produced
in
Ukraine,
such
as
wheat
and
aluminum,
are
rising,
too.

President
Joe
Biden
said
Thursday
that
he
would
do
“everything
I
can”
to
keep
gas
prices
in
check.
Biden
did
not
spell
out
details,
though
he
mentioned
the
possibility
of
releasing
more
oil
from
the
nation’s
strategic
reserves.
He
also
warned
that
oil
and
gas
companies
“should
not
exploit
this
moment”
by
raising
prices
at
the
pump.