Highest rate of inflation since 1982: US inflation rises to 7.9 percent

US consumer prices rose 7.9 percent in February – the highest rate in 40 years. This increases the pressure on the US Federal Reserve to counteract this with a key interest rate hike next week.

Inflation in the United States has reached its highest level in 40 years. Consumer prices rose 0.8 percent in February compared to January. Compared to the previous year, this meant an inflation rate of 7.9 percent. That was more than experts had expected and another 0.4 percentage points higher than in January.

Energy price driver

The prices for food and above all for energy rose particularly sharply, although the exploding oil price as a result of the Ukraine war had no effect. Petrol was 38 percent more expensive in February than a year ago, used cars 41 percent, groceries eight percent.

If you look at core inflation and remove the strongly fluctuating prices for food and energy from the inflation rate, prices rose by 6.4 percent. This is also the highest value since 1982.

Fed rate hike imminent

February inflation is attracting particular attention in the US because the US Federal Reserve will decide on its future interest rate policy next week. It is considered certain that it will raise the key interest rate. The recent statements by central bank chief Jerome Powell also made this clear. It is unclear whether it will take a larger rate hike of more than 0.25 percentage points to counteract inflation.