The acceleration of the price increase is related to the consequences of the war in Ukraine for the US economy.
White House spokeswoman Jen Psaki at a press conference on April 7, 2022. (AFP/MANDEL NGAN)
A record for price increases. Inflation for March in the United States, with figures to be released on Tuesday, April 12, should be
“extraordinarily high”
White House spokeswoman Jen Psaki warned Monday, pointing to
the additional price spike associated with the war in Ukraine
† “We expect CPI inflation to be exceptionally high in March due to the price hike caused by (Vladimir) Putin,” Jen Psaki said at her press conference.
She said the White House expected to see a “big difference” between the headline inflation rate and the so-called “underlying” inflation rate, which
excluding energy and food prices
, the very ones that have risen since the Russian invasion of Ukraine. President Joe Biden planned to speak on the subject Tuesday from Iowa on a trip dedicated to the topic.
Already high inflation
Inflation in the United States is already high, but continues to rise
rose in February with the onset of the conflict in Ukraine
right at the end of the month. Consumer prices, for example, rose by 7.9% in one year, an unprecedented rate since 1982, according to the CPI index, which mainly indexes pensions. And so inflation should accelerate in March, which will be the first to be fully impacted by the effects of the war in Ukraine on prices in the United States.
The evolution of inflation in the United States since 1948, in percentages and in annual evolution ( AFP / )
One month inflation is expected at
1.2%, compared to 0.8% in February
† Core inflation should be stable at 0.5%, confirming that the price increase is being driven by energy and food. Inflation should not slow down in the coming months, economists warn.
To counter this, the US central bank (Fed) started raising its key rate in mid-March, which is rising again
the cost of credit and therefore have to slow down consumption
and investments to alleviate price pressures. The institution has warned that it will continue to tighten its monetary policy in the coming months.
