The U.S. is facing the highest inflation in four decades as the Consumer Price Index (CPI) rose 7.9% in February compared to last year, marking the fastest annual jump since 1982. The figure is higher than January’s 40-year higher rate of 4.5%. The main attribution behind surging inflation was a surge in energy prices.
After the release of consumer price data, the U.S. President Joe Biden said in a statement published by The White House on Thursday that the U.S. jobs recovery remains strong, while new unemployment claims remain low.
He touched on the rising gas and energy prices as the market reacted to the Russian President Vladimir Putin’s aggressive actions in Ukraine, while reiterating that there will be costs at home as the U.S. imposes crippling sanctions in response to Putin’s unprovoked war.
“American can know this: the costs we are imposing on Putin and his cronies are far more devastating than the costs we are facing,” said Biden in the statement.
“I know that higher prices impact a family’s budget, which is why I am fighting to bring down the everyday prices that are squeezing Americans,” he added and noted that his plan on relieving the costs has already started with a release of 60 million barrels of oil from its strategic reserves. Meanwhile, the Biden Administration is also pushing on other factors, including lowering the cost of essentials like prescription drugs and energy.
