U.S. inflation reached a new four-decade high of 7.9% in February as Russia’s invasion of Ukraine pushed energy prices sharply higher
Russia’s attack on Ukraine helped push the price of oil to over $100 a barrel for the first time since 2014. Here’s how rising oil costs could further boost inflation across the U.S. economy. Photo illustration: Todd JohnsonU.S. inflation reached a new four-decade high of 7.9% in February, the Labor Department said Thursday, as Russia’s invasion of Ukraine pushed energy prices sharply higher.
Before the Ukraine crisis, economists and policy makers had been hoping for a peak in year-over-year inflation this spring as supply chains heal from pandemic-related disruptions and the Federal Reserve begins an expected series of interest rate increases next week. But the outbreak of war has supercharged prices for oil, wheat, and precious metals, threatening higher inflation for longer.